Long-term disability insurance is like instantaneous savings

Even though most people prefer not to think about worst-case scenarios when it comes to their health, the truth is that illness can strike anyone at any time in Wisconsin. Long-term disability insurance can help people avoid worrying about their finances so that they can put more focus on becoming healthy again. However, finding out that an insurance company denied a claim can spark fear and desperation. With proper legal guidance, an individual can work to claim the benefits he or she initially was promised by the company in the case of disability.

The risk of becoming disabled is actually twice the risk of dying early, based on data from the Social Security Administration. The SSA says that a quarter of the people who are in their 20s today will suffer a disability before they reach 67 years old. A disability isn’t necessarily catastrophic or permanent: Rather, it simply refers to a condition that renders one incapable of working for about three months or more.

With many employers not providing long-term disability benefits, people often have no way of coping with periods during which they can’t make a living. In fact, more than 60 percent of bankruptcies resulted from medical problems, according to a 2007 study. A majority of these personal bankruptcies stemmed from the loss of income, according to the study.

Long-term disability essentially is instantaneous savings for an unexpected injury or illness. Therefore, a disabled person who lacks a strong emergency fund may primarily rely on disability benefits to financially get through the ordeal in Wisconsin. An individual whose claim for long-term disability benefits has been rejected can take legal action in an attempt to successfully navigate the claims process and fight for one’s rights in our state.

Source: The Huffington Post, “Why I Bought Long-Term Disability Insurance“, Jennifer Fitzgerald, May 16, 2014

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