Long-term disability (LTD) insurance is a safety net that is supposed to catch you if you can no longer work due to a disabling illness or injury. But when the insurance company rejects your LTD claim, you face potentially catastrophic financial and health outcomes.
Employment benefits are an important consideration when seeking and accepting new employment, as well as remaining with an employer, and can be a significant source of support for employees both during their working years and after they retire. This is why it is so important to work with an experienced attorney when employment benefits are wrongly denied.
When federal laws are enacted, they apply to all 50 states. For example, the Employee Retirement Income Security Act provides rules and requirements for qualified retirement plans provided by employers from 401(k)s to long-term disability insurance. Although this law applies to all 50 states equally, does it affect residents in Wisconsin the same way it does in Minnesota? The answer is, not always.
Many Milwaukee area residents participate in their employers' long-term disability plans as a part of standard employee benefits packages. Other Wisconsin residents may have purchased their own disability benefits policies from insurance companies. People invest in such insurance coverage because it is important to have a lifeline in place should one become disabled before retirement.
We are picking up our discussion of a case out of the 8th U.S. Court of Appeals regarding an employee's long-term disability benefits claim.
We know of many people who are enrolled in their employer-sponsored 401(k) type plan but who are completely at sea when it comes to allocating their retirement savings. They are grateful for the benefit, but they often end up basing their investment decision on well-intentioned but arbitrary criteria. The fund is based here in Milwaukee? Check. My brother-in-law mentioned this fund over dinner one night? Check.
The 3rd United States Circuit Court of Appeals recently ruled that American Airlines improperly terminated the long-term disability benefits of a former pilot. The airline pilot experienced a psychotic episode and was no longer able to fly after the episode. Observers of the case say the most important part of the ruling was how the court explained the remedy for when an employee's long-term benefits are unlawfully terminated.