Disability Benefits
While many people consider life insurance to provide for their loved ones if they pass away, many don’t think about what could happen if they become disabled. Most Americans don’t have enough savings to provide for their families if they can’t work. Disability insurance provides benefits for people who can’t work because of a disability.
Disability insurance requirements depend on your state and your individual plan. To find out about your disability insurance benefits, talk to a local disability insurance lawyer for legal advice.
What Is Disability Insurance?
Disability insurance provides benefits for people who are unable to work because of a disability. Disability coverage can include long-term disability insurance (LDI) or temporary disability insurance (TDI). The different types of disability insurance include:
- Private disability insurance purchased by an individual
- Private disability insurance provided by the employer
- Social Security disability insurance (SSDI) administered by the federal government
- State disability insurance plans
Short-term disability insurance is generally for disabilities lasting less than one year. This can include non-work-related injuries, mental health conditions, or childbirth. Long-term disability insurance covers disabilities expected to last for more than one year.
What Are the Disability Insurance Benefits?
Disability benefits can depend on your individual plan. Insurance companies offer various types of disability insurance policies, with different terms for the following:
- Eligibility for disability benefit claims
- Waiting period for receiving benefits
- Amount of disability benefits
- Maximum weekly benefit amount
- Length of coverage
- Employee/employer contribution
The amount of disability benefits is generally based on a percentage of your wages. For example, a disability insurance plan offers wage replacement benefits of 70% of your salary. If you make $1,000 per week, your disability benefit amount would be $700 per week.
Do You Need Disability Insurance?
The chances of becoming disabled in your life are higher than you may think. According to the Centers for Disease Control and Prevention (CDC), about one in four adults have some type of disability. According to the Department of Health and Human Services, one in four children have special health care needs. Many of these disabled people don’t have regular access to a healthcare provider or healthcare needs.
Some workers aren’t sure if they have disability insurance. They also aren’t sure what it covers. According to the Bureau of Labor Statistics, private disability insurance is available to less than half of U.S. workers. Short-term disability insurance is available for about 40% of workers. Long-term disability insurance is available for about 35% of workers.
The cost of short-term and long-term disability is generally based on your income. Disability insurance premiums can cost between 1% and 3% of your annual salary. The cost of insurance can also depend on your age, health, and occupation.
If your employer offers disability insurance, check the terms of your benefit plans. If your employer doesn’t offer disability insurance, contact your insurance provider for a quote.
Are Employers Required To Provide Disability Insurance?
In most states, employers don’t have to provide disability insurance. Some private employers offer short-term or long-term disability insurance as a job benefit. A handful of states require employers to provide short-term disability insurance. These states include:
- California
- Hawaii
- New Jersey
- New York
- Rhode Island
What Other Legal Protections Can You Get for a Disability?
The Americans with Disabilities Act of 1990 (ADA) gives disabled people many protections. This includes nondiscrimination laws, disability rights laws, and reasonable job accommodations. But even with civil rights laws, you may not be able to earn a living.
A disability is any condition that makes it difficult to do major life activities, including work activities. Physical and mental conditions can affect your ability to see, hear, think, move, or remember. If you have disability insurance, it can pay benefits to provide for you and your family. Without disability insurance, you have to rely on state and federal financial assistance.
Why Was My Disability Claim Denied?
To get disability insurance benefits, you need to file a disability claim with the insurance company. The insurance company will review your application and approve or deny your claim. The insurance company can also ask for more information.
The insurance company can deny your disability claim if there are problems with your application. Your claim may be denied if:
- Your injury falls under a workers’ compensation claim
- The disability doesn’t qualify as a disability under the insurance policy
- You’re still working and earning an income
- You can do other types of work
- You don’t submit medical evidence to support your claim
- There are errors in the claim application
- Administrative errors by the insurance company
If your claim was denied, you can file an appeal. The appeals process can depend on your individual policy.
How a Lawyer Can Help
You generally have a limited time to file an appeal. If your employer or insurance company denies your disability insurance claim, talk to a lawyer. A disability insurance lawyer can explain your legal options and help you get benefits if you’re unable to work.