Workers who become disabled often depend upon LTD insurance payments to bridge the gap between the time they were injured and the time they are able to return to work. Several factors can affect the limitations of long term disability (LTD) coverage.

Is There a Time Limit on LTD Insurance Payments?

Make sure to read your LTD policy closely because some conditions may contain footnotes denoting a time limit on your benefits. Some mental illnesses, chronic pain, arthritis, and alcohol or drug abuse-related disabilities often have a 24-month cap on LTD coverage.

While short term disability plans typically last between 3 and 6 months, many long term disability plans last for two years, and others last for five or ten. Long term disability benefits can also last until retirement age—of course, this is a more expensive plan, but it could be the more cost-effective option depending on when a person becomes disabled and how long the disability lasts. The average disability claim lasts for just under three years, according to the Council for Disability Awareness.

What if I Receive Social Security Disability Benefits, Too?

Most of the time, insurance companies that provide long term disability benefits require the worker to apply for Social Security disability insurance benefits within a certain amount of time. The insurance companies reduce the payments they send you by the amount you receive from the Social Security disability program.

If you do not file a claim with Social Security, your insurance company may end your long term disability coverage completely.

If My Doctor Deems Me Permanently Disabled, Do I Need to Return to the Doctor?

Even if the doctor doesn’t believe any further treatments are available that will improve your condition, most LTD insurance policies demand continual proof of your disabled status through regular visits with your physician. If your doctor’s visits cease, the insurance company might believe your disability no longer exists, and your LTD payments could be stopped.

In the event your condition improves to the point your doctor says you can return to work, the LTD payments will stop.

Are All Mental Illnesses Treated the Same Under My LTD Plan?

According to Policy Genius, ome insurance companies place a 24-month cap on covering mental illness, but others consider mental illness to be a pre-existing condition that won’t be covered at all.

If the insurance company’s underwriting guidelines allow long term disability for mental illness, those cases involving depression, panic attacks, anxiety or bipolar disorder have the best chances of receiving coverage because they can be successfully treated.

Schizophrenia may not be eligible for coverage under a long term disability plan because it is difficult to successfully control. Anyone who has attempted suicide may have to wait several years, often a decade, before the person can be eligible to obtain a long term disability policy at all.

Will LTD Insurance Payments Be Equal to My Salary?

Policy Genius also points out that, most of the time, LTD payments are equal to approximately 60 percent of your total gross income, but it depends upon the policy. By contrast, short term disability (STD) payments usually cover up to about 80 percent of your gross monthly income.

What If I Follow All the Rules, Am Still Disabled, But My LTD Payments Stop?

In the case of payment stoppage, you may have legal recourse.  Unum provides nearly 40 percent of all LTD insurance policies in the United States, covering about 17 million Americans. The company has been accused of cutting off long term disability payments to many workers for no reason other than to allegedly satisfy shareholders, according to a report by the LA Times.

In 2002, the television show 60 Minutes interviewed Unum employees who reported they received financial rewards if they met a monthly quota of denied claims. One doctor who had worked for Unum said he was fired after he refused to back the company’s direction to deny claims to people who were disabled.

Since then, Unum has faced thousands of lawsuits regarding accusations of unfairly denied claims. In some cases, plaintiffs have been awarded tens of millions of dollars in settlement money over their insurance denials.

Can I File an LTD Lawsuit?

If your long term disability benefits from Unum were unfairly denied or terminated, you may be able to file a lawsuit and pursue compensation. Pursuing litigation can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced disability insurance attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The bad faith insurance attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or Unum class action lawsuit is best for you. [In general, Unum bad faith lawsuits are filed individually by each plaintiff and are not class actions.] Hurry — statutes of limitations may apply.

Learn More