Most people know that there are two main types of disability insurance—short-term and long-term—but exactly how long can you stay on long-term disability?

What Are Long-Term Versus Short-Term Disability Benefits?

While the general difference between short- and long-term disability insurance is fairly obvious, it can still be unclear. Short-term disability insurance is meant to provide benefits for a comparatively short length of time—usually, about three to six months. While short-term benefits don’t last as long, they are also cheaper, and the benefit period generally begins within two weeks of making your claim. Short-term benefits can cover up to 80 percent of your gross monthly income.

Long Term Disability Insurance Benefits

Long term disability insurance is a type of insurance that covers a portion of an individual’s income if they have become injured or ill. The coverage will not usually supplement someone’s income 100 percent, instead, long term disability insurance limits provide between 50 and 70 percent of a monthly salary.

The most significant difference between short-term and long-term disability benefits is that long-term benefits are measured in benefit periods of years rather than months. The benefit period usually begins a few months after making the claim. If needed, you can claim long term disability insurance for anywhere from two to ten years, or even until retirement age, based on individual policy terms of your LTD insurance and the type of disability claim you file. Typically, long-term benefits cover up to 60 percent of a person’s gross monthly income.

According to U.S. Department of Labor statistics, “most long-term plans (88 percent) have a maximum amount payable and the median maximum payout in 2014 was $8,000 per month.”

LTD Elimination Period

After a disability occurs, there is typically an “elimination period” associated with long term disability coverage. This refers to the amount of time that a policyholder has to wait before they can start receiving the benefits of their insurance. An elimination period may be 30, 60, or 90 days, but longer elimination periods may be as long as six months or a year.

The elimination period length may be dictated by what type of plan an individual opts for. A shorter elimination period may be associated with a higher monthly premium.

Long-term and short-term disability benefit plans can work together so that, after becoming disabled, a person can start with their short-term benefits right away before moving on to their long-term benefits after the elimination period is over. Short and long-term benefits cannot, however, overlap.

What Are the Long Term Disability Requirements?

The most important aspect of filing a long-term disability claim is providing evidence to prove that your disability meets the definition of disability laid out in your actual insurance policy.

It is important to understand what conditions may qualify a person to claim long term disability benefits. According to the Council for Disability Awareness, musculoskeletal disorders are the number one cause of disabilities. This group of conditions includes arthritis, back pain, spine disorders, joint disorders, fibromyalgia, and more. The majority of long term disability claims are reportedly caused by illnesses such as cancer, heart attacks, or diabetes. Other significant causes include back pain, injuries, poisoning, and mental disorders.

Who Pays for Long-Term Disability Insurance?

Often times, long-term disability insurance may be offered through an employer via a provider like Unum or MetLife. In some cases, the employer will cover the entire cost of long-term disability insurance. In other instances, the employee is completely responsible for the cost of coverage. Other plans split the cost between the employer and the employee.

How Long Do Long-Term Benefits Last?

Unlike with life insurance, auto insurance, and most other insurance products, long-term disability insurance does not pay out in a lump sum—instead, after the claim is filed, the benefits are paid out gradually over a long period of time.

How long you can stay on long-term disability depends on which plan you have. Some benefit periods last two years, some last five or ten, and some even last until retirement age. Longer benefit period plans cost more money, but could be more cost-effective depending on when a person becomes disabled and how long it lasts.

Usually, a five-year benefit period is enough to cover people’s disabilities, since the average disability claim lasts for just under three years, according to the Council for Disability Awareness.

The average worker drastically underestimates the likelihood of becoming disabled at some point in their career. Indeed, 64 percent of those earning a wage believe their risk of becoming disabled for three or more months is two percent or less. However, they actually face about a 25 percent chance, according to the Council for Disability Awareness.

In the case of Unum, one of the largest insurance providers in the US, receiving the claim may be the challenge. Unum has been accused of bad faith insurance practices, denying claims on a regular basis.

Knowing and understanding the terms of your disability insurance can help you make sure that you are getting all of the benefits you are eligible for. Being armed with this knowledge can also help you ensure that you receive your benefits for the longest period of time. If denied or if disability insurance is cut off unexpectedly, an insurance lawyer can help decide if you have a case to fight to reclaim your benefits, first through the appeals process and then, if necessary, through litigation.

How to Find a Long-Term Disability Lawyer

A growing number of people are coming forward with allegations that, after they filed legitimate disability claims with Unum Life Insurance Company of America, they were unjustly denied their claim. If you believe your disability insurance claim was unfairly denied or terminated, you should first file an appeal for the claim, but you may later be able to file an Unum claim denial lawsuit and pursue compensation.

Filing a lawsuit can be a daunting prospect, especially while dealing with insurance issues, 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.

Get Help With Your Long Term Disability Insurance Appeal

If an insurance company denied your long-term disability insurance claim within the past 180 days, a knowledgeable insurance attorney can help you appeal.

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