What is long-term disability insurance?

Workers in Wisconsin may have questions about long-term disability insurance. Many employers offer this type of insurance as an optional benefit that workers can purchase through their employment. Many workers forgo this insurance, especially those that are younger who may feel that it is unlikely they will become disabled. However, choosing to purchase this type of insurance may provide some help to many people.

Although young workers tend to forgo long-term disability insurance, studies have shown that one in four will suffer a disabling condition at some point. When a disabling condition lasts longer than the short term disability period of three to six months, long term disability insurance will kick in.

The insurance will then pay the worker an amount that is approximately 50 to 60 percent of their former salary on a monthly payment basis. The payment period can be for a set time period or even up until the age of 65, depending on the policy that is purchased. The insurance is generally relatively inexpensive with an average annual premium of $226 per person in a group long-term disability plan.

Those who suffer from a disabling condition that makes them unable to work for a period longer than three months may be able to submit a claim for long-term disability benefits if they have this type of coverage. Sometimes, insurance companies will dispute or deny the long-term disability benefits claim. In the event that this occurs, people may wish to consult with an employment law attorney concerning their claim. The attorney may be able to evaluate the facts and the associated medical documentation and help prepare a response to a dispute or denial.

Source: Insure.com, “The basics of long-term disability insurance“, November 30, 2014

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