fbpx
Your source for the latest health, disability and Insurance news and tips

What did I just sign up for? Understanding your group long-term disability plan

What did I just sign up for_ Understanding your group long-term disability plan

Given that we’re only a few weeks into 2017, chances are good that you’re still getting used to some of the adjustments you made to your employee benefits during annual enrollment. For example, it could be that your paycheck is now smaller owing to larger retirement contributions or that you’re back to having to pay deductibles for medical insurance.

It could also be that there is one adjustment you made for 2017 that you have yet to notice to any real degree: the decision to opt into group long-term disability coverage through your employer.

First and foremost, you are to be commended for your good judgment and second, chances are good you may not notice this disability coverage until you actually need it and, at that point, you’ll be very glad you have it.

Nevertheless, it’s understandable how a person could have questions about what it is that they actually signed up for during annual enrollment. As such, today’s post will provide some basic background information.

In the event you are injured or diagnosed with some illness, your employer most likely has some mechanisms in place to cover your absence from a wage perspective, such as sick leave, vacation time, workers’ compensation and short-term disability. But what happens when your condition necessitates more than just a few, days, weeks, or months away from work?

These are the sorts of situations where long-term disability is truly indispensable, providing much-needed coverage once short-term disability ends.

As for the amount of salary replaced by long-term disability coverage, a typical policy will provide benefits totaling 60 percent of your total wages up to a designated maximum benefit.

While this isn’t full wage protection, long-term disability payments can nevertheless provide you with the comfort that comes from knowing that you’ll have the money you need to cover basic living expenses, including mortgage payments/rent, groceries, car payments, clothes and utilities.

As for how long long-term disability payments last, it can vary depending on the terms of the policy. However, many last until you are able to return to work or reach your Social Security retirement age.

We’ll continue this discussion in our next post …

Source: Consumer Federation of America, “Long-term disability income insurance: Financial protection for you and your family,” January 2017

Our Promise To Our Clients:

  • FREE: Consultations and Insurance Case Evaluations Are Always Free
  • UNDERSTANDING: We understand how you feel. Our clients are often at the very bottom of their life, feeling emotionally, physically, and financially exhausted.
  • PASSIONATE PEOPLE: Our expert Attorneys and Dedicated Staff Love The Work We Do. We are Compassionate, Caring, and Results Driven.
  • UNPARALLELED RESOURCES: We will not be bullied or outspent by billion-dollar insurance companies or their army of lawyers. 
  • RESPECTED: We have fought and won the respect of every disability and Long-term care insurance carrier for our policyholders.
  • RESULTS: Frank Darras and his firms have recovered nearly a $1 billion dollars in wrongfully denied insurance benefits to date, and we put that proven track record to work for you and your family.

DarrasLaw is Americas' most honored and decorated disability litigation firm in the country. Mr. Darras has seen more, evaluated more, litigated more, and resolved more individual and group long term disability and long-term care cases than any other lawyer in the United States.

Request a Free, Confidential Case Review.
Skip to content