Long-term disability insurance is a safeguard many people hope they never have to rely upon. Most people hope to stay healthy, productive, and able to enjoy all of their normal daily activities – including work. Unfortunately, however, this isn’t always the case – and in those instances where a long-term disability arises, being able to claim long-term disability benefits can be tremendously helpful.
Often, however, claiming long-term disability benefits can lead to many questions. Employees often wonder what will happen if they go on long-term disability. How much will be paid in benefits – and how often? Do employees lose their jobs if they’re away from work for too long? Do long-term disability benefits expire? All of these are essential questions to ask.
Let’s take a closer look at these benefits and what might happen when an employee needs to claim them.
A Closer Look At Long-Term Disability
Long-term disability insurance is intended to provide benefits to individuals with a non-work-related injury or illness that lasts longer than twelve months. Usually, short-term disability policies will offer income protection for workers with injuries or illnesses that render them disabled for a period of twelve months or less, while long-term disability plans may provide benefits for anywhere from two years to retirement, depending upon the terms of the policy. Typically, work-related illnesses and injuries are covered by the employer’s workers’ compensation policy, not long-term disability insurance.
Long-term disability insurance can either be purchased and provided by an employer as a benefit to employees or purchased privately by an individual from an insurance company. Under a long-term insurance policy, an employee will receive a portion of their weekly pay from the insurer that provides the policy. Generally, the plan will address how much an employee will receive and how long they will receive it.
It is also essential to understand that while long-term disability may provide wage replacement, it generally does not protect an employee from losing his or her job. In certain circumstances, however, certain federal and state laws may offer job protection for disabled individuals.
A Few Frequently Asked Questions
Claiming benefits can be tremendously helpful – but it can also often seem complicated. A few frequently asked questions include:
How Much Will I Receive in Benefits?
It is important to understand that every policy will be slightly different, and the terms of each policy will depend upon the agreement between the individual in question, the company that issues the policy, and the employer that makes it available. As a general rule of thumb, however, benefit amounts are based on a percentage of the employee’s current income. This is often, although not always, around the 60% range of the employee’s pre-tax monthly salary.
How Long Will I Receive Benefits?
The length of time for which benefits are paid will depend upon the terms of the policy itself. Typically, policies will provide benefits for a predetermined number of years if the disability continues to exist and the individual cannot return to work. Common time periods are two, five, or ten years, or even up to the retirement age. Generally, the longer the benefit period, the higher the cost will be.
Will My Benefits Coordinate with Other Benefits for Which I Might Be Eligible?
This is an understandable question, as those who are unable to work may also qualify for other benefits, like Social Security Disability or workers’ compensation. Usually, this will depend upon the particular terms of the policy and the rules and guidelines set forth by the Social Security Administration and/or the workers’ compensation provider. Some long-term disability policies will allow for payment of dual benefits, while others won’t. Consulting with your attorney and reviewing your policy carefully will be necessary to make a determination concerning your particular circumstances.
Will I Lose My Job if I Go on Long-Term Disability?
As a general rule, long-term disability policies do not offer job protection to policyholders. In some cases, depending upon the circumstances of the disability and how long it lasts, an employer may be able to terminate the employee legally. In other instances, certain protections under federal and state law may apply. As with many complex legal issues, speaking with an attorney who knows and understands the law is always advised.
Liner Legal – Your Long-Term Disability Attorneys
Struggling with a long-term disability is challenging in many ways. When you’re trying to live with a disability, you don’t need to add legal stress to your list of worries. The good news is, you don’t have to. Instead, you can turn to the talented and experienced long-term disability legal team at Liner Legal. We know and understand every aspect of the law concerning long-term disability benefits, and we’ll pursue the best legal strategies on your behalf.
Whether you live in Cleveland, Akron, Canton, Columbus, Youngstown, Sandusky, or the surrounding areas, you can reach us quickly, and we’re always ready to help. Give us a call today. We look forward to speaking with you soon.
