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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.
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Long Term Disability Insurance Benefits and Pitfalls Free Powerpoint Templates
Long term disability insurancepays 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.
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?
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.
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.
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.
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.
