What percentage does long term disability insurance typically pay?

Long-term disability insurance typically pays a percentage of an individual's pre-disability earnings, and the common range for these benefits is between 60% and 70% of the employee's gross income prior to the onset of the disability. The correct range stated in the options indicates that long-term disability insurance generally offers benefits that replace a significant portion of lost income due to an inability to work because of illness or injury.

While responses indicating lower percentages like 50-60%, or even higher percentages like 80-85% and 40-45% may seem plausible, they do not align with standard industry practices. Insurers design these policies to amount to enough total income replacement to support individuals during long-term disabilities without providing overly generous payouts that might discourage returning to work after recovery. Hence, the range commonly accepted in the industry reflects a balance of providing sufficient financial support while encouraging individuals to eventually transition back to work.