"Tom was cleaning leaves out of his gutter when he fell off the ladder and hurt his back. A trip to the ER confirmed that he had four herniated discs and would need months of intensive physical therapy before he could return to work. Tom’s long-term disability insurance paid a percentage of his lost income, while he worked to regain his strength."
How Tom’s plan paid off:
Tom’s long-term disability coverage paid 55% of his gross monthly income until he was able to return to work.
Annual salary: $69,600
Gross monthly earnings: $5,800
Monthly benefit: $3,190 Tax free