The majority of U.S. workers haven’t protected their income with disability insurance, opting to forgo short-term or long-term disability benefits through their employer, according to recent claims data. Even more surprisingly, 7 out of 10 baby boomers don’t have long-term disability insurance, even though they are most likely to need it because of their age.
Some of the reasons that workers don’t sign up for long-term disability coverage were that:
- They felt healthy and didn’t think they needed it.
- They weren’t sure what long-term disability insurance covered.
- They weren’t sure the cost of coverage was worth it.
However, according to the Social Security Administration, more experience a disabling condition that sidelines them from work for at least a year before they reach retirement age.
Long-term disability insurance basics
Long-term disability insurance specifically protects workers’ income if they can’t work for more than a few months. Usually, workers can receive 50-60% of their income if they have opted into their employers’ long-term disability insurance plan. Often, workers who claim long-term disability aren’t doing so because of a work injury, but because of other problems.
Some of the common conditions workers file long-term disability claims for include the following:
- Musculoskeletal disorders
- Mental health issues
- Injuries from fractures, sprains and strains of muscles or ligaments
Denying long-term disability claims
Just like any medical-related insurance claim, sometimes, insurance companies deny long-term disability benefits. This is when working with an attorney who has experience with long-term disability claims can help. An attorney with experience handling long-term disability claims can see if your insurance company has acted in bad faith or bolster the evidence that your injury or illness prevents you from working.
Many insurance companies wrongly deny long-term disability benefits. So, it’s always worthwhile to see if an attorney can help you get the benefits you need.