If you can no longer work or create an income for yourself and are covered by a long-term disability policy, some benefits can secure your financial future. For example, depending on your prior income, you may be entitled to about 50%-80% of monthly benefits.
Most LTD policies are divided into two types: the group plan usually bought from an employer and the individual plan purchased directly from the market. Depending on your long-term disability policy, it can have multiple legalities, strict deadlines, and exceptions.
If you plan on applying for LTD insurance, you first request a copy of your LTD policy and then contact companies that offer disability insurance. The next essential step is to hire a disability lawyer who will help you fight your claim and win it.
However, here are some essential things you must know about your long-term disability insurance before you start the filing process.
Definition of disability in your LTD policy
The definition of disability in your LTD policy significantly impacts the benefits you will receive at the time of claiming. The two primary options in a long-term disability policy are own occupation and any occupation.
Depending on your policy, if it falls under your occupation, the definition of disability is a person who sustains medical complications due to an illness or accident and cannot work or generate an income from their regular source of earnings.
On the other hand, any occupation policy means a person cannot derive an income from any source related to his experience, skills, or education. The rule for ‘any occupation’ is comparatively strict.
Exception or limitation
- Mental health issues
Disabilities related to mental health are generally covered after 24 months of any issue. In most cases, problems like schizophrenia and organic bran discords are treated under LTD. However, problems caused due to alcoholism or substance abuse are not covered under the policy.
- Pre-existing complications
Almost every long-term disorder policy excludes underlying health complications from the benefits. The standard period of any pre-existing disease is about 90 days.
- Time limit on benefits
Depending on your policy, the duration of benefits can differ. Some long-term insurance policies offer benefits until age 65, compared to the other policies that only last for a few years.
To know the exact duration of benefits that you will receive, study the summary plan description in your policy.