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What is Long-Term Disability Insurance?

June 7, 2020

What is Long-Term Disability Insurance?

Long-Term Disability (LTD) insurance protects you financially by providing income in the event you become disabled for an extended period of time and are physically and/or mentally unable to work.

How much does long-term disability insurance pay?

LTD insurance typically pays a reduced portion of your regular monthly income, usually ranging from 60 to 80% of your normal income.

How do I get long-term disability insurance?

LTD policies can be purchased directly from insurance companies and are also frequently offered or earned through your employer as an employment benefit.

Are there any restrictions or requirements for long-term disability insurance?

In most cases, if you become disabled and have LTD insurance, you must remain disabled for 90 to 180 days after going out of work before long-term disability benefits become payable. You must also typically remain in consistent treatment with the appropriate medical providers for your condition in order to be eligible for benefits. Often, your LTD policy will require you to be disabled from your occupation and may then require you to be disabled from any occupation after 24-48 months of receiving benefits. The definitions and terminology of your occupation and any occupation can vary policy to policy, so it is important to read the policy carefully and in its entirety. It is crucial to understand the terms of your policy in order to perfect your claim for LTD benefits.

Are there any offsets to my long-term disability insurance?

LTD insurance benefits will often be offset by other income you receive while disabled. Other income could include, Social Security Disability Insurance (SSDI) benefits, passive income from a business you may own, retirement benefits, etc. In many cases, if you are receiving benefits from an employer-provided LTD policy, the insurance company will require you to apply for SSDI benefits so that they may offset those benefits and pay less out of their pockets. SSDI offsets can be tricky.

How long do long-term disability benefits last?

LTD benefits last for as long as you remain disabled under the terms of your policy, or until you reach the Maximum Benefit Period. For more information regarding how long you can receive LTD benefits, please read How Long does Long-Term Disability Last?

Can I have more than one long-term disability insurance policy?

You are not limited to one LTD policy. Some people purchase additional individual policies to supplement their employer-provided LTD policy. Individual policies are governed by state insurance law, as it is a contract between the policyholder and the LTD insurance carrier.  Typically, disability policies provided by employers are governed by a federal law known as ERISA, or the Employee Retirement Income Security Act. ERISA laws and regulations can introduce unique challenges which can make it difficult for claimants to access their benefits. If your ERISA-governed LTD claim is denied, it is wise to contact an attorney for assistance.

Contact the Long-Term Disability (LTD) Attorneys at CCK

At Chisholm Chisholm & Kilpatrick LTD, our team of attorneys and professionals understand that filing a claim for LTD benefits can be challenging and confusing. LTD benefits are important for you and your family. We can help you access the LTD benefits to which you are rightfully entitled. We can handle your claim and deal with the insurance company so you don’t have to. Contact us now at 401-237-6412 for a FREE consultation.