Long term disability (LTD) insurance offsets lost income when health conditions prevent you from working, but there are limitations. LTD insurance may only cover you for short periods. To protect yourself, it is important to be aware of the options that are available.
The Bureau of Labor Statistics (BLS) reports roughly half of all workers to have long term disability coverage through their employers. Generally included as part of your overall compensation package, this may go into effect the moment you are hired or you may be required to work at the job for a period of time before coverage begins. It protects you in the event an injury, illness, or chronic health condition prevents you from working for a year or longer, generally compensating you for up to three-quarters of your income.
The length to which you are entitled to receive benefits will depend on the exact terms of your policy. Most LTD policies will payout for a period of three to five years. Some extend up to 10 years or even until you reach retirement age, though the greater costs of providing this type of extensive coverage makes it less common to find in the workplace.
To protect your rights to long term disability benefits, one of the first steps you should take is to request copies of all policy-related documents from your employer. Under the Employee Retirement Income Security Act of 1974 (ERISA), a federal law that governs employer-provided benefits, your employer is required to provide these documents, free of charge.
Once you obtain a copy of your LTD policy, review the terms to see how long you may be entitled to LTD benefits. If it is for a relatively short period, you may want to consider the following options:
At Bartolic Law., we work with you to ensure you get the long term disability benefits you need to provide for yourself and your loved ones. To speak with our Chicago long term disability attorneys, call or contact our office online today.