Long-term disability can be caused by a number of things. Whether it was an early onset issue, or an unexpected accident at work, either way, you’ll need a straightforward outline of the financial options for a long-term disability case. Long-term disability can last anywhere from 34 months to three full years and that can be a gruelingly tight time financially dealing without any source of steady income.
While typically it is more normal for long-term disability policies to go through employers in terms of compensation, you do have the option to buy individual long-term disability insurance as well. Short-term coverage characteristically only lasts about six months, and beyond that, if you’re still struggling to get on your feet and otherwise can’t because of your injury, that’s where long-term insurance will pick up the slack. Usually, it will provide you with 50 to 60 percent of your salary (granted, this all depends on your policy, this is just the most common of occurrences) and this will last until your policy either expires or you go back to work.
The tricky part becomes apparent when you are “partially disabled.” This occurs when you can still work, but only at a job that pays significantly less that what you were initially receiving. For instance, if the job you can now do is only about 20 percent or less of what you used to make, then it is more likely that you’ll end up receiving full disability benefits that are instead, based on your pre-disability income in order to help keep you afloat. Should you be earning more than 20 percent of your pre-disability income, then you would instead receive a proportionate amount of regular income based on the percentage that you can earn (it’s important to note that if you can earn more than 80 perfect of your pre-disability income, then it is more than likely that you will no longer be considered disabled).
Regardless of which category you fit into, it’s important to consult an attorney for all of your questions and concerns. They can help you to navigate the legal jargon of your insurance policy and figure out what exactly all of your options are moving forward.