What is a typical characteristic of long-term disability (LTD) plans in group insurance?

Long-term disability (LTD) plans in group insurance typically provide benefits that can extend for two years or longer. This characteristic distinguishes LTD coverage from short-term disability (STD) plans, which generally have much shorter benefit periods. In the context of group insurance, LTD is designed to replace a portion of a policyholder's income in the event they become unable to work due to a long-term illness or injury.

The length of benefit periods can vary widely between different policies, but common durations for LTD benefits can extend to a few years, to age 65, or even until Social Security retirement age. This design aims to offer financial support for those who may face prolonged periods of disability, reflecting the understanding that some medical conditions may not resolve quickly.

Thus, the option that describes benefits extending for two years or longer accurately captures the essence and purpose of long-term disability plans within group insurance.