How long is long-term disability insurance typically effective?

Long-term disability insurance is designed to provide income replacement for an extended duration in the event that an insured individual is unable to work due to a disabling condition. The correct answer indicates that this type of insurance can remain effective until the individual reaches retirement age.

This means that, as long as the policyholder remains disabled and meets the conditions set by the insurance policy, they can continue to receive benefits. Such a provision is crucial for individuals who may face long-term health challenges that prevent them from working for an extended period, thereby ensuring financial stability during a potentially prolonged absence from the workforce.

In contrast, insurance plans that provide benefits for shorter durations, such as up to 6 months or in limited periods of 1-2 years, do not adequately cover those who may experience longer-term disabilities. Similarly, a plan described as indefinite but subject to yearly reviews would not guarantee coverage until retirement age, which might introduce uncertainty and potential loss of benefits if the policy terms are not favorable post-review.