Understanding private long-term disability

On Behalf of | Jul 3, 2020 | Long-Term Disability Insurance

Disability insurance in Hackensack, New Jersey, provides an income for those who can no longer work due to injury or illness. Some employs buy insurance through employers, but the insurance is only good for the duration of employment. Private long-term disability and short-term disability each provides payments, but short-term disability only pays for several months of lost income. Some employees may qualify for social security disability.

Private disability insurance could cost 1% to 3% of the annual salary in premiums. It covers 70% of the salary for as long as the illness or disability lasts, and it also provides options for hospital coverage. There is a minimum wait period of 90 days before the benefit period starts. The employee may get denied if the condition is believed to be caused by a pre-existing condition.

Short-term disability commonly falls under a group policy, which makes it less costly, and the coverage commonly starts within two weeks. However, the average coverage period is three to six months and pays 60% of salary. Some states require employers to provide short-term disability. Medically needed surgeries with the exception of organ donation, pregnancy, weight loss surgery are commonly covered as well as needed medication that causes side-effects making a person unable to work.Social security disability doesn’t cost the person anything, but it comes with stringent requirements. An applicant could wait months before they receive benefits as they have to prove the disability, and they could be denied. The applicant will get reimbursed for the time they waited, once they get approved.

Sometimes, a legitimate private long-term disability claim can be denied, and the laws may be complies for the average person. A lawyer knowledgeable about private long-term disability law is commonly the best way to handle denials and file an appeal.

FindLaw Network