Your health insurance pays for your medical bills, but what about your other monthly expenses if you are unable to work due to a disability? Long-term disability insurance is meant to replace wages when you cannot work for an extended period due to a disability. Whether you have a group policy governed by ERISA law or private individual disability policies, they are designed to protect your income if you cannot work due to sickness, injury, or an accident.
Usually, these policies pay approximately 60% of your earnings. There is also usually a built-in elimination or waiting period where the benefits are not payable until a certain period after you stop working, usually after you’ve been unable to work for 90 or 180 days. A separate insurance policy for short-term disability benefits is typically used to pay disability benefits until long-term disability benefits kick in.
You can purchase coverage that will cover you so long as you cannot perform the substantial duties of your own individual job, and you can buy coverage that will cover you for two years, five years, or until retirement age. You should buy as much coverage as you can.
Why You Should Consider Long-Term Disability Insurance
The United States Census Bureau has indicated that you have a 1 in 5 chance of becoming disabled before retirement age. In 1997, the Census Bureau issued the results of a study showing that more than 152,000,000 people between the ages of 21 and 64 (which is a prime working age for most Americans) have some form of disability. As such, this is a particular area of concern for employees and self-employed individuals who should seriously consider having a long-term disability policy.
If you need help with your claim, contact long-term disability attorney Nick Ortiz. He offers a free case review if your claim has been denied or terminated. Call Ortiz Law Firm at (888) 321-8131 or contact us online to get your free case review.