Long Term Disability Insurance Benefits and Pitfalls

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Long Term Disability Insurance Benefits and
Pitfalls
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Long term disability insurance pays the insured
person cash benefits when he or she is unable to
work and earn a regular salary due to any
disability. You can buy the coverage through a
group, generally through your employers or
privately. 2. Are You Eligible for Something
Else Too? Most employers offer disability
benefits to employees. If they suffer injuries on
the job, they are also eligible for Workers
Compensation benefits. Those who suffer permanent
disability may be eligible for social security
disability insurance benefits, depending on the
nature of injury and the circumstances in which
they suffered the injuries.
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3. Why Go Private? There are Many Reasons If you
feel that your interests are not adequately
covered by the insurance offered by your
employer, considering the risk you are exposed to
at your workplace, then you can buy private long
term disability insurance. Apart from providing
you better coverage, this policy assures tax free
benefits, if the premiums are paid with after-tax
money. It is possible to take your policy with
you when you change jobs. Even if you earn a very
high salary, your benefits will be commensurate
with your salary. 4. Long-term disability
insurance can be tough to decipher. What should
you do?
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5. It must be understood that the policy can be
as complicated as health insurance policies and
may be beyond the comprehension of a common man.
Using the services of a long term disability
insurance lawyer can help you make sure that the
policy you buy has all the features you want and
there are no hidden terms and conditions that
could affect your claims when you need the
money. 6. There are a few things that you must
look for in a disability insurance
policy   .Make sure your policy covers you up to
age 65. It means your premiums will remain
constant as long as they are paid on time. .Stay
away from accident-only policies. It is very
likely that the insurance company will find a way
to deny your claims by linking your disability to
some other reason. .Some insurance companies
include clauses that exclude payment of benefits
for pre-existing conditions that later become
disabling. .If you have access to emergency funds
which allow you to manage your expenses without
immediate benefits, then consider a longer
waiting period for payments. It can lower your
monthly premium.
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7. Do You Really Need Long Term Disability
Insurance? According to information from
reliable sources, about one out of three women
and one out of four men will be unable to work
due to a disability for a minimum of three months
or more during their career. Figures also reveal
that one out of every seven workers will be
disabled for five years or even more. 8. Every
worker must know what it takes to qualify for
long-term disability. Your condition must meet
specific guidelines which cover various areas,
such as the type of impairments, income,
resources, and a few others. The Social Security
Administration (SSA) provides Supplemental
Security Income (SSI) and Social Security
disability benefits to individuals with medical
conditions that are expected to last for at least
12 months which may result in death or are harsh
enough to prevent gainful employment. Your lawyer
will be able to help you understand the specific
grounds under which you qualify for
benefits.
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9. Looking for Benefits Through SSA? Find Out if
You are Eligible Workers who are looking for
long-term disability eligibility through the SSA
require that an individual is unable to maintain
gainful employment. This is defined as work done
for more than 20 hours per week with earnings of
1,000 plus per month on an average. If you
exceed either of these requirements, you will be
considered ineligible for receiving disability
payments. 8. Your Medical Condition Must be
Severe Enough for Staking Claim You must have a
serious medical condition that limits your
ability to maintain gainful employment severely.
The SSA has a list of medical conditions which
will be referred to for confirming your
eligibility. However, you may qualify, even if
your specific medical condition is not listed,
provided, it can be proven through substantive
medical evidence that your medical condition
impairs your daily functioning and can prevent
you from discharging your professional duties
properly.
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Long-term disability often covers up to 65
percent of your income. However, there are
features, such as Cost of Living Adjustment
(COLA), which increase the payment as the cost of
living increases. If your disability lasts a long
time, it is quite possible that the payment you
receive every month may not cover your costs due
to the decreasing purchasing power. 11. How to
Do It Right? Long term disability insurance is
generally available through employers, but it can
also be purchased from insurance companies. The
policy comes with the option of choosing the
definition that is most apt for your situation.
The assistance and guidance of a qualified
long-term disability attorney can help you make
the best decision.