Learn personal and professional finance terms to keep you in the know

A benefit that replaces a portion of your income when a medical condition prevents you from working for an extended period, typically picking up where short-term disability leaves off. Most plans pay 50–60% of your gross pay and can continue for years or until retirement age, depending on the policy. Premiums are sometimes paid fully by employers; whether they're paid pre- or post-tax affects whether your benefit payments are taxable income.



