What is a Long-Term Disability Insurance?


Life is unpredictable, you never know what will happen in the next moment. It is always a good idea to prepare for a bad day. Please be mindful that your health insurance won’t be of any use in disability scenario. Then, what should you do? The best thing is to go for a disability insurance; it can be an individual or group disability policy, either a Long-Term Disability Insurance or a short-term Disability Insurance. Choose the one that works the best for you and your family. Disability can be mental or physical, both can count on claiming an insurance plan.

Long-Term Disability Insurance

Long-term disability insurance starts from anywhere between 3 or 6 months to retirement age. Some conditions may provide lifetime policies in some cases. Long-term disability insurance can also be initiated and awarded by employers and organizations. A calculated amount of salary is deducted by employers to the Long-term disability insurance for full-time or part-time employees. Long-term Insurance is the best bet before a disability of a person. If an individual is partially disabled, he/she can get full benefits if the post-disability income is more than 20% or lesser than the pre-disability income. Mostly, insurance companies pay 60% of the income before disability excluding bonuses.

Benefits of the Long-term Disability

Buying a long-term disability insurance will cover all your medical and grocery expenses for a long time; from two years to your retirement or lifetime in some cases. In long-term policy, after you prove the disability through medical records, you will start receiving Long-term Disability (LTD) coverage immediately. You don’t need to pay monthly insurance premium after you have claimed the insurance. The best thing about Long-term Disability (LTD) is that all the insurance expenses are paid, so you don’t need to worry about paying insurance monthly or yearly. You will receive a monthly stipend, almost 60% of your basic salary. The insurance policy includes rehabilitation to help you get back to work ASAP. The claiming procedure is easy with professional support from the insurance companies.

How Does Long-term Disability (LTD) Work?

Disability insurance is claimed by employees; Long-term Disability (LTD) requires you are a full-time employee at the time of disability. After disability, there’s a waiting period for Long-term Disability (LTD), starting from the next day to 3 or 6 months usually. During the disability period and verification, the employee is ineligible for salary and benefits by the insurance company. There are few limitations while claiming for Group Long-term Disability (LTD) Insurance i.e. 2-year probe on all the accidents and disabilities caused by alcohol consumptions, mental conditions including stress, drug abuse, and nervous breakdown.

How to File a Long-term Disability Claim?

After disability is claimed by the employee, the application is processed through a scrutiny program through various departments of an insurance company. The eligibility criteria is different for every case, be it Long-term or Short-term. The disabled person has to fill out all the necessary forms to initiate the process. The next step is the employer’s statement; the date you were hired, employment status (part-time or full-time), earnings, and eligibility for insurance. Now, add a note from your doctor with details of illness, treatments, the cause of illness or injury, and recovery period. Don’t forget to provide any evidence that can help you claim insurance policy, and you are done filing a strong application for Disability insurance. If you are looking for a Long-Term Disability Insurance for your organization. Give us a call today at +1 (800) 788-8921 or send us an email here. Disability Insurance Advisor is ready to help. We are in the disability insurance field for the last 20 years. We can help you understand the coverage and limitations of your current insurance policies held such as Medicare, Medigap Insurance (also known as Medicare Supplemental Insurance), Medicaid, or other similar policies for living assistance help.


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