Understanding Long Term Disability Insurance

If you sustained an injury that prevents you from working, you may be entitled to receive long term disability. This long term disability coverage is insurance benefits to supplement your income. Long term disability insurance provides relief to its recipients by providing compensation to make up for an injured employee’s inability to continue to work and earn a living. Understanding long term disability insurance is essential to making sure you get all the benefits you are entitled to receive as the result of your disability.

Long term Disability Insurance Coverage

The amount of money an individual is entitled to receive from long term disability insurance will depend on the terms of the policy itself. Typically, payouts are determined based on a percentage of the person’s pre-disability salary. Average percentages range from between 50 and 80 percent. Compensation in excess of an employee’s base salary such as bonuses commissions or overtime may also be factored into this calculation. An attorney can help employees considering filing claims.

How Long Does this Coverage Last?

Unlike short-term disability which only applies for a limited period of a few months, long term disability provides payouts for a much longer duration. Similar to the amount that will be paid out by the policy, the duration of the payouts will also be dictated by the terms of the policy. Many policies end when the insured reaches the age of 65. Alternatively, policies may last for a certain number of years. The nature of an individual’s disability, as well as the age at which they become disabled, may also be relevant factors in establishing how long benefits will be paid out. Furthermore, coverage for disabilities related to mental illness is usually more limited than other types of physical disabilities.

Proving a Disability

To be covered under a long term disability insurance policy, an individual must be able to establish that they are disabled as defined by the policy. Medical bills and reports from physicians are common forms of evidence used to establish a disability. Certain types of disabilities such as pre-existing conditions are often excluded from long term disability coverage. Additionally, even if a certain type of disability would otherwise be covered, many policies impose limits on coverage based on how an injury was incurred. Finally, coverage may be denied if there is insufficient evidence to support a disability or that a person is not able to continue to work.

Understanding Long term Disability Insurance is an Important First Step in a Successful Claim

Accidents can happen to anyone. Just because you do not work in a dangerous profession does not mean that you will not have coverage under a long term disability insurance policy. Insurance companies are often resistant to approving claims simply because the less money they must pay out, the more money they stand to make. Do not let your claim be denied based on a technicality. If you have questions about your insurance policy or would like to speak with an attorney about long term disability insurance, please call. An attorney can be an important resource in understanding long term disability insurance.