Most able-bodied working Americans are paying for long term disability benefits even if they do not need them. Should an injury or illness happen one day, they know they will be protected. According to the U.S. Census Bureau, each person has a 1/5 chance of becoming disabled at some time in his or her life, whether for a few weeks or a few years. If you find that you are suddenly unable to work, then you may petition for disability insurance to help you cover living expenses while you recuperate.
When you are sick or injured, you will first begin by filing for short term disability insurance, which will cover you for a few weeks or up to six months. Once your short term benefits expire, your long term disability benefits will kick in. Each month, you will receive a flat-rate percentage of your income, which is usually around 50 to 60%. The best policies can provide as much as 80% and will pay cost-of-living adjustment increases over the years to keep up with inflation. Your benefits can be paid for 2 to 5 years or until you're 65, at which time you will be eligible to apply for Social Security.
The end goal of long term disability benefits is to allow you the time to fully recuperate and get back to work as soon as possible. As a result, most disability insurers will work with employers to see that this happens. According to Diane Russell, assistant VP of marketing at CIGNA Group Insurance, they commonly manage disability insurance claims where individuals are able to return to their workplace but perform alternate duties. For instance, a man who hurt his back lifting heavy crates in a warehouse may be able to return to his employer and take a desk job, although instead of making $40,000/year, he will only make $20,000/year. In that case, the LTD policy would pay him 60% of his new job, so instead of staying home and collecting $24,000, he will now be collecting $32,000 ($20,000 in salary and $12,000 in benefits). This situation is often preferable to employers, employees and insurance companies alike.
Long term disability benefits vary by many different aspects, so it's good to understand what type of disability insurance you have through your employer. In some cases, it may be preferable to buy your own policy. Some policies will fill disability insurance claims if you cannot perform the duties you've been educated, trained and traditionally employed to do, whereas other policies may only pay benefits if you can only get another job making 80% of what you used to make. The amount you receive also varies, ranging from 50 to 80% of your monthly salary. The most common policies pay 50 to 60% and do not include bonuses or commission income. Waiting periods can last 90 days, 6 months or longer before you receive your benefits. Also, the length of time you may collect benefits ranges from 2 to 5 years to until you reach 65, when you'll be eligible to apply for Social Security.
Just enter your name and email to get your FREE Disability Benefits gift immediately !
|
Technorati Tags: Disability Benefits, Long Term Disability Benefits
