Long Term Disability begins after your Short Term Disability expires or after an elimination period of 25 weeks. After you have met your elimination period you will begin receiving monthly benefit of 60% of your pre-disability earnings up a maximum benefit of $5,000 per month. This benefit is paid is not taxed. You are able to receive this benefit until you reach social security retirement age. Much like Short Term Disability there is a pre-existing clause that if your condition began 6 months or less before you were covered under the policy you will not be eligible for benefits until you have been enrolled in the coverage for 12 months or more. Long Term Disability requires you continue to pay your monthly premium while receiving your benefit.
Knowing your benefits … Long Term Disability
Many of us do not recognize the potential dangers of becoming permanently disabled. You may think your risk of becoming disabled is small unless you have a dangerous job or have adrenaline junkie needs with daredevil tendencies, that is not the case. Genetic disorders and illnesses are the top ranking reasons individuals become disabled in all age categories. A disability can strip you of your ability to make a living and while you hope your savings account can assist in the months that you cannot work, few are able to afford to maintain their current lifestyle. That is where Long Term Disability Insurance can help assist during this time.
Common Myths of Long Term Disability-
“Worker’s Compensation will cover me”- Workers Compensation Insurance only replaces lost income if injury or illness occurs on the job. Most long term disabilities claims that occur are a result of an illness.
“It’s a man’s problem” – According to the Bureau of Labor statistics, 60% of Long Term Disability recipients are females.
“I’m too young” – Those same statics state the average recipient of the Long Term Disability recipients are between the ages of 25 -50, with a third of those claims going towards those under 40.
If this is a benefit you are considering you have an opportunity to potentially sign up during our open enrollment period in September and coverage going into effect October 1st. This benefit is offered to help protect you and your family in the event you are unable to earn an income due to your disability. The cost of the premium is low cost to pay to keep you and your family’s financial security safe. If you have any questions please reach out to your Happy People Department.