Some Facts about Long Term Disability Insurance

Oct 2, 2014 by

It is a sad fact that you don’t think about insurance until you need it, and by then it is too late. While most people have insurance covering their car, home, and health, few people think about getting long term disability (LTD) coverage. Some employers include this as part of their employee benefits, but most employers and employees labor under some misconceptions about LTD that lead them to dismiss it as unnecessary.

For one thing, they believe that LTD only happens to a few people. In fact, it is estimated by the Social Security Administration (SSA) that nearly 25% of all workers in the US will be disabled before they turn 67 years old. For 2012, insurance companies paid in excess of $9 Billion in employer-sponsored LTD benefits to 650,000 employees.

Some rely on workers’ compensation insurance to cover LTD, but in most cases, LTD is not work-related. This category of LTD comprise less than 5% of all LTD cases, with more than 90% accounted for by disease or illness. This means that employees that acquire LTD outside of work will have to apply with the SSA for benefits if they have no employer-provided LTD insurance. Some believe that LTD only occurs to older people, but between 2009 and 2012, about one-third of LTD payments were made to people under the age of 40 and 41% were those 50 years old or younger.

In an article on the Hankey Law Office website, it was pointed out that LTD insurance coverage is the same as any type of insurance: it is for the unexpected. Unfortunately, even those with LTD insurance coverage can experience difficulty in getting their claim approved because again like in any type of insurance, the insurer wants to keep their payouts low to non-existent. If you are having in claiming for employer-provided LTD benefits, you should make the extra effort to get what is rightfully yours. Consult with an LTD lawyer in your area to find out what can be done.

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