Disability Insurance
Income protection which pays a portion of your monthly income to you in the event you are unable to work due to injury or illness.
Income protection which pays a portion of your monthly income to you in the event you are unable to work due to injury or illness.
Generally speaking, disability insurance is available in three forms:
1. Short-term Disability Insurance
STDI provides a portion of your gross monthly pay for 3-6 months. Employers often offer this type of insurance for up to 80% of what you normally earn; though you’ll have to remain with your Employer to get the benefits. Some states mandate employers to offer STD insurance.
2. Long-term Disability Insurance
Your LTD benefit, on the other hand, can last from 2 years to a lifetime benefit. The amount of the benefit is often between 50-70 percent of your pay. If you go on claim, typically, benefit payments last until you recover or age 65, whichever comes first. LTD is offered to individuals, groups or businesses in the form of overhead protection or to fund a partnership buy-sell agreement.
3. Social Security Disability Insurance
SSDI is a form of insurance offered by the US Gov’t. and is extremely difficult for which to qualify. The government considers only those individuals with severe disabilities.
If your benefits package includes LTD (Long Term Disability) Insurance coverage, or if you’d like to purchase your own policy, we can help you receive the bulk of your salary if you become unable to work.
In order to have your benefits approved, insurers first require that you go through medical underwriting. You will likely be required to answer questions regarding your medical health history in a phone interview, take a physical exam, and provide blood and or urine samples. Due to COVID 19, many companies have now waived the “in-person” exam and labs requirement portion of the underwriting process, depending on the amount of coverage required. Many companies will request your medical records for procedures performed or chronic conditions disclosed or found out through the medical history interview.
Additionally, you may have had to work a minimum number of hours, endure a waiting period, pay premiums, and so on, in order to have successfully jumped through the insurance company’s ‘hoops’.
Begin by reading your Disability policy’s summary plan. You can check with your employer’s HR professional(s) or call your JFish Representative.
Total Disability
Total disability occurs when you are, due to an injury or illness, simply not able to perform the duties associated with your job description, in a substantial manner. Potentially, under some policies, you can receive your full benefit, even when working at another job.
Partial Disability
It’s possible to receive partial disability benefits even if you are still at work, in some capacity, and receiving payroll income from your employer.
By completing a form or issuing a written statement concerning his/her opinion of your medical condition, you can remain eligible to receive LTD benefits. Your insurance company’s Claims Administrator is within his/her rights to request related medical records. Examples include x-rays, MRI’s surgical reports, clinic notes, lab reports, etc.
1. Pay your premiums
If you do not make timely payments on your premiums, your insurance coverage may lapse. So make a monthly note on your calendar or in your online banking memo area.
2. Waiting (or “Elimination”) Period
Insurance companies will make you wait – often for 3 to 6 months – before being eligible to receive benefits. It is likely that you will be required to “use up” any sick leave days that you’ve accumulated, prior to filing for STD. Then, once those benefits have been used up, you can file for Long Term Disability.
3. Full-Time Work
Assuming you have a full time schedule, you will be covered for LTD. Take the time to verify your policy’s requirements – which may only indicate 30 or 35 hours (and not the typical 40 hours) as being sufficient to qualify for benefits.
4. Pre-Existing Conditions
In today’s political discussions, the term “pre-existing conditions” is a hot topic. Think of these as injuries and illnesses that had been treated (or even, simply, diagnosed) within 3-6 months before your Long Term Disability Insurance began.
When this situation occurs, the Insurance company won’t pay benefits for any LTD that arises from the pre-existing condition – generally for the first year of your LTD coverage.
5. Excluded Conditions
JFish advises that you check that an injury or illness is covered by your LTD policy before filing for benefits. Certain accidents in your type of workplace, or particular diseases may simply not be covered.
