Long-term disability insurance (LTD) is invaluable if your job is dangerous. But even if you sit at a desk all day, long term disability insurance is still useful. Studies show that a 20-year-old has a 25% chance of becoming disabled before age 62.
Having a disability often means you can’t work, which is a severe economic disadvantage. You could apply for Social Security disability, but it doesn’t pay as much as long term disability insurance. Long term disability insurance pays for certain things such as food, clothing, rent, mortgage, and utilities.
In this article, we’re going to teach you some general information about long term disability law. This information will help when you meet with a long term disability lawyer at an initial consultation. We’re also going to explain different ways that a long term disability lawyer might be able to help your situation. Finally, at the end of the article, we link to our guide which lays out the specific steps to take on how to get a lawyer.
General Information on Long Term Disability Law
Before we proceed, you need to know that the information in this section is only general information about long term disability law. It is not legal advice and it is not even specific advice. Instead, use this general information to prepare for your consultation with a long term disability lawyer. At the consultation, the lawyer can advise you on your specific situation.
Benefits of LTD Insurance
Lawyers highly recommend long term disability insurance policies because they have many advantages if you become disabled.
The most important is the coverage itself. The insurance covers someone due to an injury or accident at work, but also outside of work. For example, long term disability insurance could help if someone is driving to the grocery store, gets in a car accident, and suffers a long term disability. In situations like this, long term disability is very useful.
Another benefit is the monthly payments under the long term disability policy. The exact amount depends on what was negotiated in the policy. It can range anywhere from 50% to 60% of the policyholder’s prior monthly salary.
In regards to duration, benefits are paid until the policyholder returns to work or the policy expires. The amount
What to Know Before Buying LTD Insurance
Here are a few things that individuals should consider before purchasing a long term disability insurance policy:
Definition of “Total Disability”
The most important thing to understand is when benefits are paid by the policy. In most policies, it hinges on the definition of “total disability.” Most policies that don’t classify someone totally disabled, and eligible for benefits, if they can still perform “some important duties” required by a job. For instance, if a job requires lifting heavy boxes and completing paperwork, a person might be denied coverage as long as they can still complete paperwork.
Cost of Living Adjustments
Another consideration is whether the policy includes any cost of living adjustments. The policy might provide this as a standard benefit but it could also make it available as an upgrade. Is the upgrade worth the price? It depends on the length of the policy. If the policy is a short term policy, then it’s usually not worth the extra cost. But when the policy is longer, the upgrade starts to make more sense.
Another thing individuals should look for are policies that say the policyholder is not responsible for errors after a certain amount of time. For example, imagine buying a policy, and it asked the buyer to list every time they visited a doctor for pain. If they get disabled and the insurance company discovers they accidentally left out a doctor, they might deny coverage! But if the plan says that after three years of owning the policy, the policyholder is not liable for any mistakes, the policyholder won’t be denied for the mistake!
How a Long-Term Disability Attorney Can Help
There are many reasons to hire an attorney who specializes in long term disability if an insurance company denied a claim.
Evidence Collection & Relevance
Long term disability attorneys understand what evidence to collect and how to negotiate with the insurance company. You might think certain evidence is relevant, but an attorney might think otherwise. They have been handling these types of claims for years and have a better handle on what to collect and how to work with the insurance company than you.
Bad Faith Insurance Companies
They are also able to stop an insurance company from acting in bad faith. Insurance companies might be acting in bad faith when they require excessive information, duplicate information, or ask for more than a reasonable amount of documents. Your lawyer will be able to assess the actions of the insurance company and make these determinations.
Prevent Biased Perspectives
Another reason to hire a lawyer is to prevent a private investigator from failing to show the whole picture. Usually, when someone claims disability, insurance companies send out private investigators to follow the individual. The investigator secretly records and photographs them in public driving their car or bending over. The photographs are then given to the insurance company who argues that the person doesn’t look disabled based on the photographs. The problem is this doesn’t show the whole picture and creates a biased perspective of someone’s disability. You should talk to your lawyer who can give you specific advice about your situation and help prevent these problems.
How To Get A Long Term Disability Lawyer
If you’ve come this far, then you should have enough general information about long term disability law to assist a lawyer in advising you about your specific situation. Also, you should have a general idea about how a long term disability lawyer can help your situation.
But before you start searching for a local long term disability lawyer, there is one more step you should take. We highly recommend reading our guide about how to get a lawyer. In the guide, you will learn many things about how to get a lawyer. Here is an example of what you will learn:
- How to find a lawyer experienced with long term disability law.
- How to research the lawyer’s background.
- Questions to ask before an initial consultation.
- Questions to ask during an initial consultation.
- Observations to record about the lawyer
- How to decide whether to hire the long term disability lawyer.
Once you read this guide, you should be prepared to hire a lawyer to help with your long term disability needs.