Women Pay More Than Men
Even with all other factors being equal, women can pay up to 40 percent more in premiums than men for disability insurance. Thatâs because women suffer disabilities that impact their careers, such as breast cancer, autoimmune disorders, and depression, more than men. Disability claims for women also typically last longer than those for men.
- A 40-year-old male applying a $3,300 monthly benefit will pay $61 a month.
- A 40-year-old woman getting the same coverage will pay $80 a month.
For what it’s worth, the gender price gap for disability insurance is the opposite of life insurance. Women consistently live longer than men, which means they get the same preferential treatment you see men getting here.
The Appeal Process For Challenging A Claim Denial
If your original claim is denied, you will need to challenge the denial. This will only lengthen the period of time before you are paid. Again, this will be based on the type of long-term disability plan you have.
If you have an ERISA disability plan, in order to challenge a claim denial, you must file an appeal. You only have 180 days to file your appeal. Once you file your appeal, the disability insurance company has 45 days to make a decision. They can then give themselves an additional 45 days if they need more time.
If you have an IDI policy, you usually do not have an appeal requirement like an ERISA disability plan. This means you can appeal or take the matter directly to court if you desire.
How To Choose A Disability Policy That Fits Your Needs
If your employer offers STD insurance as mandatory or voluntary part of your employee benefit package, thats great but its just a start. You should also see if they offer a long term group plan if youre self-employed you may be able to get coverage through a professional association. Either way, group insurance can be an excellent choice. The company or association is buying for a large group of people, so the premium is typically lower than for an individual policy. In addition, your HR department will likely have more expertise and leverage to negotiate favorable terms. On the other hand, youll probably have less opportunity to tailor the policy to your needs, compared to an individual policy. If the premiums are paid with pre-tax dollars then the income benefit you get down the road will typically be taxed. Finally, if you leave the company or association, in most cases youll also lose your coverage.
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When Until Retirement Age Is The Right Benefit Period
Having long-term disability insurance cover you until retirement age is particularly good for certain professions. Specialty professions that rely on a particular set of skills, like doctors, dentists, or nurses who need fine motor skills for procedures, benefit from until-retirement long-term disability insurance as a safeguard against future income loss if their disability prevents them from using those skills.
Additionally, if you have accrued a lot of debt, you can benefit from from long benefit periods so you can still pay make payments even if you canât continue in your expected career.
If you can afford the modest rate increase, springing for a long-term disability insurance policy that will last until retirement is a good option.
Whatever you opt for in your specific policy, make sure you understand exactly how long your long-term disability insurance benefits will be in place. If you reduce the potential for unknowns, itâll make a difficult time go more smoothly.
Advantages And Disadvantages Of Short Term Disability Insurance
Short term disability insurance is intended to cover individuals who cannot work for brief periods of time. Although some short term policies can last for up to two years, the typical policy lasts between three and six months.
Because the length of time over which these policies pay benefits is relatively small, short term disability insurance policies are usually the most affordable options. Additionally, they tend to begin paying benefits immediately or within the first two weeks once the policy holder has become disabled, and they typically pay close to 100 percent of a worker’s salary for the first few payments.
Short term disability insurance policies can have drawbacks, however. Benefits run out within a few months, leaving disabled individuals on their own for the long term. Short term policies also tend to have fewer options and protections for payouts under certain circumstances, such as the death of the policy holder or a policy holder becoming disabled close to retirement age.
Despite these tradeoffs, short term disability insurance may be your best option if you:
- Already have long term disability coverage through an employer
- Have limited savings to cover the first few months of a disability
- Prefer lower monthly payments in exchange for a shorter term of benefit payments
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How Do I Prove That Im Disabled
If youre thinking about filing an LTD claim, you should first consult the summary plan description in your long-term disability policy for the policys precise definition of disability. Generally, you will be found totally disabled if youre unable, due to illness or injury, to substantially perform the duties of your occupation. If your LTD policy provides for partial disability, you may qualify for benefits if you can no longer work full-time at your own occupation, even if youre capable of working full- or part-time at another job.
Many policies state that you cannot file an LTD claim if you are still on your employers payroll.
As in Social Security disability cases, the most important factor in proving your disability in an LTD claim is the opinion of your treating doctor. As part of your application for LTD benefits, your doctor will be asked to complete a form or write a statement regarding his or her opinion on your condition. Your physicians opinion is critical, but the claims administrator will also want objective proof of your disability. Therefore, the administrator will also request all the medical records related to your disability, including relevant clinic notes, lab results, x-rays, MRIs, exam findings, and surgical reports.
Long Term Disability Insurance
Available through the workplace, this coverage helps maintain your standard of living if you’re unable to earn a paycheck due to an accident or illness
Covers essential living expenses: can help pay for food, clothing, utilities, your mortgage, car payments and more
Direct monthly payments: receive a portion of your salary paid directly to you each month if youre unable to work
Rehab incentives: coverage may include financial incentives designed to help you transition back to work
Easy claims filing: report claims online or by phone
Competitive rates: this group coverage is offered only through your employer
For complete plan details, talk to your companys benefits administrator.
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Get Help With Your Long Term Disability Insurance Appeal
If you qualify, an attorney will contact you to discuss the details of your potential case at no charge to you.
Should I Get Long Term Disability
If you earn an income, you should strongly consider purchasing a long term disability insurance. This is especially true under the following circumstances:
- You have dependents who rely on you financially, such as a spouse, kids, or aging parents.
- You have debt that you need to pay off, such as student loans or a mortgage.
- You have a high-paying job occupation that is not easily replaceable .
- You are self-employed .
- You have a technical job occupation that requires skills that couldn’t be performed if disabled.
Other types of coverage exist to help people through periods of disability, such as short term disability insurance, workers’ compensation insurance, and Social Security Disability Insurance . However, only long term disability insurance will cover the following circumstances:
- Disabilities that occur outside of work
- Disabilities that last longer than a few months.
- Disabilities that are serious enough to prevent you from working your regular job, but still allow you to work in other capacities
- Individuals who earn well above what SSDI pays in monthly benefits
It’s pretty clear why long term disability insurance is such a valuable component of your financial safety net. But is it the cost of long term disability insurance actually worth it?
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How Long Does Long Term Disability Insurance Last
Long term disability coverage lasts as long as you make your premium payments on-time and in-full. Simple as that.
However, itâs important to note that long term disability benefits may not last forever if you do need to receive them.
How long your long term disability benefits will last depends on your policyâs benefit period. The benefit period may be a certain number of months or years, or up to a certain age. Typically, benefit period options for long term disability insurance policies include 2, 5, or 10 years, or until ages 65 or 67.
What Type Of Disability Allows Me To Qualify For Long Term Disability Benefits
Most long term disability policies cover you regardless of the severity or type of illness or injury you are suffering from that prevents you from working. However, some policies exclude certain illnesses, and others may exclude injuries or illnesses which are compensable under a Workplace Safety Insurance Board claim, if it is available through your workplace.
Generally, if you are not able to do all or substantially all of the tasks required by your current job then you will qualify for long term disability benefits. Essentially, the threshold is that your disability prevents you from being able to work. However, depending on your policy it may state that in order to qualify for disability benefits you must prove that it is not only your own job that you are unable to do, but any job that you may be qualified to do in consideration of your education, training or experience. Refer to your policy to see what applies to you.
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How To Find A Long
A growing number of people are coming forward with allegations that, after they filed legitimate disability claims with Unum Life Insurance Company of America, they were unjustly denied their claim. If you believe your disability insurance claim was unfairly denied or terminated, you should first file an appeal for the claim, but you may later be able to file an Unum claim denial lawsuit and pursue compensation.
Filing a lawsuit can be a daunting prospect, especially while dealing with insurance issues, so Top Class Actions has laid the groundwork for you by connecting you with an experienced disability insurance attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.
What Is A Pre
A pre-existing condition is any medical condition for which medical care was received three to six months prior to the coverage effective date. LTD plans may have a pre-existing conditions exclusionary period. During this period of time, an individual’s prior medical condition will not be covered by the policy. However, after the pre-existing exclusionary period expires, the condition becomes covered under LTD coverage.
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Can Other Benefits Be Deducted From My Long Term Disability Payment
Yes, most long term disability policies typically have provisions which reduce the monthly payment you receive by accounting for:
- Benefits payable from any Workers Compensation plan, including Workplace Safety Insurance payments
- Disability benefits received under any other government program such as, Canadian Pension Plan- Disability, Ontario Disability Support Program, Employment Insurance- Sickness Benefits, etc.
- Income from the Criminal Injuries Compensation Act
- Wages or remuneration payable from, any employer, including any statutory or common law termination and/or severance pay
Consult your policy for specifics as your long term disability benefit may also be reduced by monies payable to your dependents for the aforementioned areas.
Long Term Disability And Its Benefits
Long Term Disability can be used following Short Term Disability plans or alone.
Long Term Disability coverage provides wage replacement that is between 50-70% percent of your earnings before a non-work related injury impacted your ability to work.
If a LTD plan is offered through your employer, it is very important to sign up during the initial enrollment period, when you cannot be denied coverage for a pre-existing condition. Read the plan summary for definitions detailing what is covered as well as specific details required by your plan.
Most LTD plans include a waiting period that lasts from 3-26 weeks, which coincides with the length of time you can be paid for STD benefits, before you are eligible to begin receiving LTD benefits.
In order to continue to qualify for benefits detailed medical information must be provided to the LTD carrier initially and then throughout the life of the claim as requested. Failure to do so will result in termination of your benefit. If you are considered disabled longer than 90 days, most policies do not require you to continue paying premiums.
Most LTD policies have two definitions of disability: Own Occupation and Any Occupation.
- During the Own Occupation period, benefits are payable if the employee is unable to perform his or her regular job or a similar job. This period can last up to two years.
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What Qualifies As A Long Term Disability
Every policy has its own specific definition of what it means to be disabled in order to qualify for long term disability benefits, but generally speaking there are two types of definitions: An own-occupation definition means you qualify if you cant work in your specialty or field any-occupation means you only get benefits if you cannot work in any occupation for which you are qualified by education, training, and experience.
What Is The Difference Between Long
Long-term disability coverage is private insurance offered through individual or group plans. LTD coverage does not have income and assets restrictions. Coverage varies between insurance policies. State and federal wage replacement programs are public benefits – Supplemental Security Income and Social Security Disability Insurance . To be eligible for public income replacement, an individual does not have to belong to a group but must meet specific requirements.
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Additional Requests From Your Insurance Company
Your insurance company might request additional medical evidence or documentation to support your claim.
Most disability insurance policies allow the insurance company to request you have an Independent Medical Exam or Functional Capacity Evaluation . If your insurance company requests that you take either of these tests, you should contact a lawyer immediately.
Whats It Like To Return To Work After Short
As the above answer illustrates, depending on your disability, different logistical elements obviously need to be sorted out upon your return.
But thats not the only factor at play heretheres also an emotional and relational element involved when you return to the office after an extended amount of time off.
Most of it was just emotional and mental fatigue after having spent four months not really on a computer every day or using my brain in that kind of way, says Tiernan.
There was the expectation that I was going to be able to jump back in right away, she adds. Looking back, I appreciate that now because I dont think I wouldve been able to transition as well as I had if it had been slow.
In addition, companies arent stagnant and there are likely some larger changes that will happen while youre out on your leaveincluding employees leaving and new team members being added. There were shifts that occurred during my time gone, so I needed to readjust to the changes that had happened, Tiernan adds.
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Can You Collect Social Security Disability And Long Term Disability At The Same Time
Yes, if you are unable to work you can receive both types of benefits, but you should keep in mind that SSDI is usually much harder to qualify for than a private policy. Most SSDI applicants are actually rejected and the benefits are typically lower than with a private plan. Thats why most experts say you shouldnt rely on SSDI alone for income protection.
Regular Or Own Occupation
The definition of “regular or own occupation” plan means you’ll receive benefits if you’re unable to perform the main duties of the job you had at the time the disability started.
You’ll still receive benefits even if you can work in a different job from the one you had before your disability, based on your training, experience and education. Some policies don’t allow you to get benefits, or may reduce your benefits, if you begin working in a different job.
In group policies, it’s common that policies have regular or own occupation plans for a specified period of time. At the end of the specified period of time, usually after the first 2 or 5 years, the disability policy will often change to the any occupation definition.
Own occupation plans that never change in definition are often purchased individually and usually cost more than any occupation plans.
You may want to consider an own occupation plan if you have a specialized occupation that would require you to take a significant pay cut in order to work in another field.
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