What You Need to Know about Long Term Disability Insurance

Posted By Arif on Jul 28, 2017 | 0 comments

Work-related injuries, illnesses and fatal accidents continue to be a major concern of federal, state and local governments due to their high rate despite the laws which mandate that all working environments should be kept healthy and safe for all employees.

Records from the U.S. Department of Labor’s Bureau of Labor Statistics reveal a little more than three million non-fatal workplace injuries and illnesses, and 4,405 deaths in 2013. Despite the substantial difference in the number of deaths during to the latter part of the 20th century (about 14,000 job-related deaths every year), authorities from the Occupational Safety and Health Administration (OSHA) knows that there is still so much to be done, considering the fact that accidents are almost always results of negligence.

Every time a worker is harmed, different issues are brought into the open, including the concerned employer’s compliance with workplace safety laws, the severity of the injury and the effect it will have on a victim’s personal, professional and financial state.

Some accidents cause no more than minor scratches, while others may be a little more serious and, thus, require days or weeks of bed rest. Some injuries are definitely severe, however, causing long term disabilities (LTD) that render a worker unable to work for months or even years, taking away his or her capability to earn wages.

Good thing, however, some employers provide employees with a long term disability (LTD) insurance policy as part of their comprehensive employee benefits package – this is to protect employees from losing any form of earnings during the period when their injury or illness will keep them out of work.

Most LTD insurance policies are designed to pay disabled employees about 50 – 70 percent of their salary. LTD benefits, however, are subject to taxes, reducing further what an injured employee would receive. Due to this, there are employees who decide to purchase a personal supplemental long term disability insurance; besides the higher pay, this is also tax exempt.

Despite employees’ eligibility to receive LTD benefits, many applications get denied or are awarded benefits that are below what the policy stipulates. Many insurance providers, obviously, are guilty of avoiding making payments, thus, they do all things possible to deny claims, delay assessment of applications or payment of claims, or pay much lower benefits.

As explained by disability claim attorneys, long-term disability insurance is supposed to help you take care of you and your family if you are ever injured or become disabled and can’t to go back to work for weeks, months, or even years. However, contrary to the promise your insurance company made you when it sold you a long-term disability policy, it denies you your long-term disability claim just when you actually need it.

If your long-term disability benefits have been denied or discontinued, there are time limits for appealing their decision. If you wait, you could miss an important deadline.


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