Nobody likes to consider being disabled. However, it is critical to determine what to do if such an occurrence occurs. How would you cover your daily costs if you were unable to work? Obtaining long-term disability (LTD) benefits is critical to managing your health while not having to worry about your income. You must first purchase a long-term Disability Insurance coverage in order for your payments to cover a percentage of your pre-disability income.
It is typically preferable to obtain long-term disability coverage as soon as possible. The younger you are and the healthier you are, the more probable it is that an insurance company will approve your application. Furthermore, younger folks frequently spend less each month on their premium than older adults.
When an employee becomes unable to work due to a disability, they must carefully consider their disability insurance alternatives. Short-term disability payments are typically given for 30 to 180 days, depending on the conditions of the insurance. If an employee remains disabled after the maximum period of short-term disability benefits has expired, they should file for long-term disability benefits right away.
Some employees believe that their short-term disability benefits will immediately roll over into long-term disability benefits; however, in most cases, a separate application for long-term disability insurance (LTD) is necessary.
Below are 3 ways to get the maximum out of your Long-Term Disability Insurance.
How financially stable and reputable the business is that your purchasing from matters
When you purchase disability insurance, the insurance provider you choose to work with is making a long-term commitment to you as a customer. In the event that you become disabled, there is a possibility that you will continue to get benefits for a considerable amount of time. Buying from a firm that has been around for a while has strong financial backing, and a good track record is a smart choice.
Check how much of your lost income your employer will compensate with disability payment
Check whether or not your place of employment provides coverage for disability. However, given the possibility that the coverage offered by your employer is insufficient on its own, you should investigate coverage options carefully. Check to see whether you have the option to acquire additional coverage during the time that you have open enrollment.
Obtain a Statement from your Doctor
The insurance company or claim administrator will demand a statement not just from you but also from your employer. They will also want a statement from your doctor. Your primary care physician will typically be asked to provide the insurer with information regarding diagnoses, signs and symptoms, objective findings, dates of treatment, types of treatment (such as hospitalizations, surgeries, and medications), referrals, an estimate of your physical limitations and/or mental impairments, an estimate of when you may return to work, and any additional remarks. This is standard procedure for insurers.
We recommend taking a form with you when you visit your treating physician and that you ask them to personally complete this declaration. This way, the form will not be lost, and you will be able to remind your physician to fill out this form with as much specificity as possible.
Naomi Olson [Website • Twitter • Headshot]
I am a CFP® (Certified Financial Planner).
I have a severe phobia of bridges and dirty balance sheets.
Hobbies: blogging, meditation, and loving Bull Market (my dog).