A prolonged illness or injury can prevent you from earning a living for an extended amount of time. On top of your health issues, this can be financially devastating for you and your whole family.
One way to protect yourself in advance is to apply for long-term disability (LTD) insurance, so that you will receive benefits if you are unable to work due to an injury or illness. Unlike Worker’s Compensation benefits, which are typically only awarded for work-related injuries and illnesses, LTD benefits can cover a part of your income (typically 50-70% of what you earned before the illness/injury), even if your condition is not work-related. You may continue to receive these benefits until you return to work or until your benefit period ends. Most LTD policies may allow you to receive benefits for longer than a year, while short term policies typically only grant benefits for up to six months.
What conditions are covered by LTD insurance?
LTD policies may cover disabilities that prevent you from doing your job, but not other jobs (partial) or disabilities that prevent you from doing any type of job (total). Generally, policies that pay out benefits to those who are unable to perform their “own” occupations are typically more expensive, as they are more comprehensive.
It is important to check the details of your specific LTD policy to find out whether your condition is covered. Generally, you may qualify for LTD benefits for any condition the has a significant impact on your health and requires ongoing treatment, as long as it prevents you from working for an extended period of time. Medical conditions that require LTD benefits may include:
- Cancer
- Heart disease
- Lupus
- Multiple sclerosis
- Depression
- Anxiety
- Blindness or hearing loss
How can I file a claim?
If you are unable to work due to illness or injury, the first step is to file a long-term disability claim with your insurance company, as well as a form that authorizes the insurer to access your medical records. The insurer will then review your medical records, work records, and other information to determine whether you are entitled to benefits. If your claim is approved, you will likely receive benefits monthly until you are no longer eligible. If your claim is denied, you may file an appeal.
