What If Youre Still Not Ready To Go Back To Work
If youre on short-term disability, your benefits will end when your predetermined time period is over or when you return to workwhichever comes first. But what if youve already maxed out your short-term disability benefits and you still cant head back into the office?
Lets return to our example of missing out on work for major back surgery. Your doctor determined that youd need six months to fully recover, and your short-term disability plan approved you for that amount of time.
However, you had some pretty significant complications with your surgery and your recovery. As the end of those six months draw near, its evident that you arent physically capable of sitting at a desk for eight hours each daythis is a problem that will plague you for a lot longer, perhaps even permanently. Now what? Are you just out of luck?
If you have long-term disability benefits, it should be straightforward enough to transition into those benefits if you meet the new definition of disability for your long-term plan. The definition for disability under a long-term plan is typically subtly different than the definition for short-term disability.
Some insurers require new paperwork from the claimant and new medical records before they will begin paying a long-term disability benefit, says McDonald.
What To Consider When Buying Disability Insurance
If you’re considering disability insurance, make sure you:
- check with your employer to see if you already have group disability coverage with your employer’s plan
- shop around, especially if you’re considering private disability insurance
Consider group insurance offered through a union, guild, or professional or alumni association. Premiums for this type of coverage usually increase as you get older. You’ll need to renew your insurance every few years.
How Do I Get Individual Disability Insurance
If youre self-employed, your employer doesnt offer disability insurance, or you want to supplement the policy your employers does offer, you can apply for an individual disability policy. Individual disability insurance elimination and benefit periods may differ from group disability insurance plans, but a financial representative can help you choose the right coverage for your situation. If youd like some help understanding what type of coverage makes sense for you and applying for a policy, get in touch with a financial representative who can help you make a decision.
If youre not ready to speak to a financial representative, but youre curious how individual disability insurance would fit into your financial plan, get a free quote now.
Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America , Pittsfield, MA. BLICOA is a wholly owned stock subsidiary of The Guardian Life Insurance Company of America , New York, NY. Product provisions and availability may vary by state.
Links to external sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services and make no representation as to the completeness, suitability, or quality thereof.
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What Qualifies For Long
The qualifications for long-term disability are usually more stringent than those for short-term disability. With short-term disability, benefits can be awarded if the employee is unable to do their job. With long-term disability, benefits will typically only be awarded if the employee is unable to do any job. What constitutes a qualifying event will be specified in the policy, so it is important to understand when benefits may apply before accepting a long-term disability policy.
Qualifying events may include chronic pain, cancer treatments, or debilitating illness or injury lasting more than 26 weeks. If an employee could qualify for another form of income replacement, such as Social Security Disability Insurance, the long-term disability policy will no longer provide benefits.
Why Should I Get Term Life Insurance
No one wants to think about their own death, let alone plan for it. However, if you have a Term Life insurance policy, should the worst happen, your family can be provided for financially. Here are a few scenarios how this can be relevant to you:
If something unexpected happens to me
- I want my child to further their studies without worrying about the cost.
- I want my wife/husband to stay in the home that we have lived in without letting our mortgage burden him/her.
- I want my parents to be cared for just like they have cared for me.
- My car loan should be the least of my family members concerns.
- I hope that my family can live comfortably without worrying about the future.
- I dont want to burden my parents with my debt if something happens to me.
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Best For Quick Issue And Simple Underwriting: Assurity
If youre searching for short-term disability income insurance that can be obtained quickly and without arduous underwriting, Assurity sets itself apart from the competition. It offers a guaranteed four-day issue for qualified applicants with minimal medical underwriting requirements.
Benefit periods from six to 24 months
Coverage available up to $3,000 per month
Many features included at no charge, with a variety of additional riders available
Quick, simple application with a four-day- guarantee on qualified applications
Full and partial disability coverage
Not available in New York
Though broad, only two occupational classes are accepted
Policies only issued through age 59
Online quotes are limited and policies can only be purchased through an agent
Assuritys Simplified Disability Income Insurance is our top choice for those looking for a feature-rich policy with quick issue and simple underwriting. It provides between six and 24 months of coverage whether you are totally or partially disabled. Coverage is offered from $300 up to $3,000 with elimination periods of 30, 60, 90, or 180 days.
The Simplified Disability Income Insurance policy is only offered to two occupation classes, which include professional/office occupations as well as skilled and unskilled manual occupations . While these categories are pretty broad, the acceptance of only two classes may be limiting to some applicants.
What Is Disability Insurance
Disability insurance works when you cant. If an illness or accident keeps you from working, disability insurance can give you a tax-free monthly benefit to help you pay your expenses by replacing some of your earnings.
You can customize disability insurance coverage with additional benefits at an extra cost. An example is a return-of-premium rider. With this feature, you may get back up to 50% of yearly premiums youve paid. A cost of living benefit helps reduce the impact of inflation by providing yearly adjustments to the monthly disability benefit during disability. Other additional benefits are available – your advisor can help you select what works best for you.
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Your Health Insurance Should Continue If You Are On Fmla Leave
The Family and Medical Leave Act permits workers to take up to 12 weeks of unpaid medical leave in a year for a serious health condition without losing their job. Whether you are eligible for FMLA leave depends on a number of factors, including the number of employees at your company, how long you have worked for the company and whether you have had other medical leaves during the past year. More information about the FMLA can be found here.
If you have health insurance with your employer and take FMLA leave, then the employer must continue your health insurance coverage on the same terms as if you had continued to work. That means, if you had made contributions to the health insurance premiums, you will continue to be obligated to do so. If premiums normally were deducted from your paycheck, but your leave is unpaid, you will have to arrange to pay the employee portion of the premiums in order to maintain coverage.
One note of caution: If you do not return to work at the end of your leave period, or if you inform your employer of your intent not to return, the employer no longer has an obligation to maintain your health insurance benefits. Additionally, the employer may require you to repay the employers share of the premium payments if you fail to return to work following leave.
If I Go On Short Term Disability Can I Keep My Health Insurance
In the past, health insurance companies wereallowed to cancel a policy within its effective date if the insured gets sickand files a claim against the policy. This was standard practice in theinsurance industry.
But this will be a thing of the past oncePresident Obama’s Health Care Reform Bill becomes fully implemented. Itprovides those who have health insurance policies with a certain level ofconsumer protection. One of these consumer protections would be that insurance companies would no longer be ableto cancel their customer’s health insurance policies due to a change in medicalcondition during the time the policy is effective.
So, yes, when the Health Care Reform Billfully kicks in, you can expect to hold on to your health insurance policy evenas you go on short term disability. You can also be assured that when it istime to renew your health insurance, it will not count your short termdisability as a pre-existing condition and exclude it from the health insurancecoverage.
Please note that short term disabilityinsurance and health insurance cover different things.
When you consider the possibility of a shortterm disability due to an injury or an illness, it would help to have bothhealth insurance and short term disability insurance. That way, you have themeans to pay for your hospital bills and prescription drugs and the ability topay your household bills. The fact that you don’t have to worry about thesewill surely help hasten your way to recovery.
|Not a bit
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Short Term Disability Vs Fmla
People also sometimes confuse short-term disability with the Family and Medical Leave Act . The FMLA is a federal law that protects workers who need time off for various family and medical reasons. It stipulates that you must be given up to 12 weeks of unpaid time off for:
- Having children.
- Health problems.
- Taking care of sick family members.
The law also protects you from being dismissed from your jobs while taking a leave of absence that is covered by the law.
However, the law does not provide a replacement for any income you might lose while taking leave . Plus, there are several qualifications to be eligible for FMLA leave:
- Employees must have worked at the employer for 12 months and 1,250 hours.
- Also, it only applies to employers with 50 or more employees.
Learn More:Short-Term Disability vs. FMLA
What Is Life Insurance
Life insurance is an agreement between you and a life insurance provider, where if you die, they will pay a lump sum, tax-free benefit to someone you choose also known as your beneficiary. In exchange, you agree to pay your insurance provider a monthly or annual premium: a small amount of money over the length of your policy
This doesnt cover you if youre dealing with long-term disability, as the policyholder has to be deceased before the death benefit can be paid . With that said, some life insurance companies offer optional riders. These riders can be added to your regular life insurance coverage at the time of application and provide options and coverage for the future, should you find yourself dealing with disability or serious illness.
Interaction With Ei Sickness Benefits
You cant receive EI sickness benefits and short-term disability at the same time. In fact, if you do receive both, you will need to pay some back.
For example, imagine you got EI sickness payments for 2 weeks. Then, you get approved for short-term disability, and they will pay you for those same 2 weeks. This creates an overlap. If theres an overlap, then youll need to pay back the EI program.
After youre approved for short-term disability, youll receive a back payment. Then, you can refund EI using that money.
How Often Will You Receive Payments
This is another area that can vary. Fortunately, your payment questions should be answered clearly within your plan documents.
Be aware that if your employer works with an insurer to offer short-term disability benefits, then payments will usually be administered through the insurance company. That means they might arrive on a schedule different from the payroll timing youre used to .
Meaghan Tiernan, a senior copywriter for a marketing agency in San Francisco, used her short-term disability for maternity leave. She was given a debit card that her short-term disability payments were added to.
I think it was one lump sum every two weeks on an regular basis, she explains. They even include weekends, so it was typically every 14 days that I was paid. Then youd have to transfer the funds from that debit card to your bank account if that was your preference.
Do You Have Enough Disability And Life Insurance These 3 Questions Will Help You Find The Answer
Its those middle-of-the-night worries. What if you get too sick or hurt to work? Or die unexpectedly? Could those who depend on you still pay the billsand save for the future?
No one likes to think about those things. But life can change in an instant. People with a good financial plan hope for the best, but plan for the unexpected. Insurance helps with that.
- Disability insurance helps protect your income if you get sick or hurt. Its kind of like car insurancebut instead of covering your vehicle, disability insurance helps cover your income.
- Life insurance can help your family pay off debt and maintain their lifestyle if something happens to you. It can also help fund the kids college education or pay off a mortgage or funeral expenses.
These three questions are a good pressure check on how well youre helping to protect your income and your family with insurance coverage.
How To Apply For Short Term Disability Insurance Coverage
Many employers offer short term disability insurance coverage to employees as a group plan. Many companies even pay the full premium for their employees. A handful of states require employers to provide this coverage.
If you cannot get short term disability through an employer or other group membership, you can buy an individual policy. This can be done through an insurance agent or directly from an insurance company that offers this type of coverage.
Group plans are guaranteed issue, meaning you automatically qualify for coverage without going through underwriting. Short term policies sold on an individual basis are sometimes guaranteed issue as well.
However, most short term policies sold directly to an individual will require the applicant to answer health-related questions. These questions will ask whether you are currently or in the past have been treated for any number of pre-existing conditions. If so, you may be disqualified for getting coverage or have your benefits limited.
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What Are The Surgeries Covered By Short
Disability insurance programs are not all the same and depending on the policy, what they cover and exclude varies from one program to another. Generally, short-term disability insurance plans pay out a percentage of your income as a replacement for your lost wages if you are unable to work because of an illness or injury.
Many disability insurance plans do not cover elective surgeries such as cosmetic surgeries and appendectomy. Most programs wont even cover surgeries for a pre-existing condition.
For a medical procedure to be covered, the key is it should be an emergency or medically necessary. Some of the common medical operations that may qualify for short-term disability benefits include caesarean section delivery, hip or knee replacement, open heart surgery, removal of the gallbladder, and surgeries involving fractured bones.
I Dont Have Disability Insurance Should I Get It
Disability insurance replaces part of your paychecks if you became disabled or too sick to work. Statistically, you have about a one in four chance of experiencing a disability before retirement.1
You can usually purchase long-term or short-term disability insurance through your employer or directly from an insurance company. If youre not sure which type of disability insurance is best for you, read about the differences between long- and short-term disability insurance.
If youre looking for quick long-term disability coverage, Breeze offers policies online with a fast application process.
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Disability Insurance In Action: An Infographic
Lets look at Disability Insurance in the form of a real-life example.
John is a 47-year-old Account Executive making $100,000/year. Hes a smoker with a low level of physical activity.
While driving to work one day, John experiences a minor stroke and crasheshis car. He is taken immediately to the hospital, where his initial injuries are assessed broken arm, concussion, and whiplash.
Over the next few days, it becomes apparent that he has lost the use of his entire right side due to his stroke, and is unable to continue working until he regains his mobility and speech. He is set to begin physiotherapy in an attempt to restore his motor skills, but his doctors warn him and his family that the process could take several weeks, months or even years, and he will be unable to continue working during recovery. Fortunately, he has access to both Short-and Long-Term Disability Insurance through his employer.
Lets follow John through his journey of diagnosis to recovery to seehow Short-Term Disability and Long-Term Disability help him:
Other Sources Of Disability Benefits
You may also be eligible for benefits from the Canada Pension Plan and the Quebec Pension Plan to add to your income when you’re unable to work.
The CPP disability benefit and QPP disability benefit are available to people who have contributed to those plans and aren’t able to work regularly at any job because of a disability.
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