What kind of expenses does long-term disability (LTD) insurance cover?

Long-term disability (LTD) insurance is designed to provide financial support to individuals who are unable to work due to a disability that lasts for an extended period. It typically covers a portion of lost income, but it can also encompass associated costs that may arise due to the disability.

Option B, which includes nursing homes and medical-related costs, reflects the critical nature of how LTD insurance can assist policyholders. When an individual is unable to work due to a prolonged illness or injury, they may require additional care or medical attention, which can lead to substantial expenses. This coverage helps relieve some of the financial burdens associated with healthcare needs and institutional care that might be necessary for rehabilitation or daily living support.

This aligns perfectly with the purpose of LTD insurance, which is to ensure that a person's financial well-being is safeguarded during challenging times when their ability to earn an income is impaired. The other options focus on aspects not typically covered by LTD, such as only lost wages, costs related to new employment opportunities, or unemployment expenses, which are outside the scope of what long-term disability insurance is intended to address.