Long Term Disability

When something like a heart attack strikes the last thing on your mind is likely to be how you’re going to pay the bills and the mortgage in the coming weeks. Many individuals who suffer from an illness that keeps them away from their job for a month or more don’t have long term disability insurance. Without it, you may have to rely on savings or loans to get you by.

Many employers offer this type of insurance as part of a benefit plan. Generally the employee will pay a portion of the monthly premium for long term disability. The employer covers the remainder. If the employee does take ill, the human resources department may handle the claim for them. This includes initial contact with the insurance company and helping the employee with any necessary paperwork.

Most plans like this offer coverage that is equal to a percentage of the employee’s regular wages. The amount is dependent on several factors including how long the employee has been with the company as well as the level of coverage they opted for. If the percentage isn’t enough to cover the minimum monthly bills, a private plan should be considered to supplement the one already in place.

Private plans will generally involve an application that focuses primarily on your past and current health situation. It’s easy to see why as some people pose a higher risk and therefore might expect to pay more in long term disability premiums.

Choosing a coverage level should be carefully considered and also discuss with the sales associate the length of the coverage that is being offered. Unfortunately some people find themselves needing coverage for several years or more.

Coverage like this should never be viewed as an alternative to getting back to work. When you are on long term disability you are expected to regularly visit a doctor and also follow every one of his or her recommendations including medication and physical therapy. If the insurance company chooses they can require you to visit a doctor of their choice for an evaluation. This is stated in the contract you initially signed when you took the policy out.

As your employment situation changes review the policy. When you reach retirement age you likely won’t be eligible for the coverage anymore so you’ll need to contact the long term disability company to notify them. Until that time, pay your premiums, take care of yourself and with any luck you’ll never find yourself in a situation where you are ill enough to need the coverage.