The great thing about long term disability benefit payments is the fact they can be used for anything you choose. Yes, you can pay your health insurance premiums or out of pocket expenses or even medical charges not covered in your health insurance plan. It can also be used for your daily living expenses.
Long Term Disability Insurance is a separate policy from Health Insurance. If you suffer an extended injury or illness that renders you unable to work, you will start receiving Disability Insurance benefits (after the waiting period, or "elimination" period, is over). These benefits are paid to you in cash and you can use that cash as you wish.
There is a Waiver of Premium rider that can be applied to some policies, including some Health Insurance policies. If you had this on your Health Insurance policy, it would allow you to keep your health insurance without paying future premiums if you were severely disabled. If you had this rider on your Disability Insurance policy, it would allow you to stop payments on your Disability Insurance, not your Health Insurance.
No. Long term disability insurance replaces some or all of your income (usually your after tax amount) in the event that you become disabled due to illness or injury and are unable to earn an income. Disability insurance claim payments are paid to the policyholder who is then free to spend the disability payment as they see fit. You could certainly use some of the money to pay for health insurance but a disability insurance policy does not directly pay for health insurance.
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There is a Waiver of Premium rider that can be applied to some policies, including some Health Insurance policies. If you had this on your Health Insurance policy, it would allow you to keep your health insurance without paying future premiums if you were severely disabled. If you had this rider on your Disability Insurance policy, it would allow you to stop payments on your Disability Insurance, not your Health Insurance.