When you are unable to work for a long period of time, bills and other expenses add up, and quickly.
Long-term disability helps to cover some of those expenses when you are unable to perform at a job for months or even years.
Think of your long-term disability benefits as protection for your income as well as all of your assets.
But how long does long-term disability last?
It all depends on your insurance policy, and your disability.
The eliminations period of your long-term disability policy can also be known as the waiting period. This is the time you have to wait between applying for your benefits and receiving the benefits. Typically, this will take between thirty and ninety days. There are times however that the elimination period may last up to six months or a year. Most insurance policies have an elimination period.
Your benefit period is the time when your benefits are being cashed out to you. This period also depends on the policy you have through your employer and/or agreed upon with your insurance company. Common benefits periods are two years, five years, ten years, or even up to retirement if needed.
It seems crazy to think that you would be able to choose the right kind of policy for you before you even have an issue. How are you supposed to know what the right choice is for a benefit period until you know what kind of disability you will be dealing with if any? Typically, opt for a five-year coverage plan, and it is enough. Keep in mind that you will pay more into those plans that last longer. You may also potentially choose to pay a little more monthly for a longer benefit period. Ultimately, you want to have some peace of mind in case you ever do need assistance for a longer period of time – that’s the purpose of long-term disability!
What You May Not Know
Finally, almost all insurers require that you must file for Social Security benefits along with your long-term disability benefits if you have been approved. This is not necessarily a bad thing. The most you will receive with your long-term disability is around sixty percent of your normal income when you were employed. If you are also receiving social security, your rate might get lowered, but it will still help to balance your benefits. Many times your insurance company can also help you with your social security and hire a disability attorney to represent your case.
If you had to file for long-term disability because of an injury that occurred on the job, you may also be required to file for workers compensation. This will also offset the benefits you receive from your insurance company. You could be in danger of losing your long-term disability benefits if you do not comply with filing social security and workers compensation if needed.
We are here to help you with your long-term disability questions. Contact us today for help!