Is being on long term disability considered for the permanently disabled section?

No, the permanently disabled section is for determining eligibility for the Credit for the Elderly or the Disabled.  Being on long-term disability does not qualify a taxpayer to take this credit.  You have a permanent and total disability (for purposes of taking the CED) if you can't engage in any substantial gainful activity because of your physical or mental condition. A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death.

If you are under age 65, you must have your physician complete a statement certifying that you had a permanent and total disability on the date you retired. You can use the statement in the Instructions for Schedule R. You don't have to file this statement with your Form 1040 or Form 1040A, but you must keep it for your records. 

https://www.irs.gov/pub/irs-pdf/p524.pdf