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What Should I Look for in Long-Term Disability Insurance?
If you are interested in purchasing an insurance policy to cover a portion of your regular salary should you become unable to work due to a medical diagnosis, you may be overwhelmed by the many different plans and options available to you When choosing between different long-term disability insurance plans two major factors to consider are the type of coverage the plan provides, and the monetary value of benefits it may supply.
The type of disability insurance coverage offered to eligible policyholders varies between insurance companies. Many insurance policies provide long-term disability benefits to policyholders who, due to a serious illness, physical injury, or mental condition, are unable to perform the duties of their current job for an extended period of time. That said, certain policies only allow individuals to collect benefits if their medical condition prevents them from working in any job, including positions unrelated to their current occupation.
In many instances, eligibility requirements for long-term disability coverage may be adjusted after a recipient collects benefits payments for more than two years. In these cases, in order to continue receiving benefits, an individual whose condition prevents them from performing the duties of their current job may need to prove that their medical condition prohibits them from returning to the workforce in any capacity.
Review the Amount of Coverage Provided by Long-Term Disability Policies
When selecting an insurance policy, reviewing the monetary values of coverage offered through each policy may help you make a decision. In Canada, most long-term disability plans provide eligible recipients with 60-70% of their normal wages. However, some policies offer significantly smaller amounts.
Additionally, many plans place a cap on the amount of benefits you may be able to receive. That means that, depending on your salary, even if the plan promises to cover 70% of your pay, if that number exceeds the policy’s payment cap, you may not receive the full percentage.
To determine if an insurance policy will provide you and your family with sufficient benefits payments should a medical diagnosis prevent you from earning a living for a significant period of time, calculating your household’s monthly expenses may be helpful. If the policy will not provide you with the funds you require to cover your monthly expenses, it may not be the right policy for you.
Policy Exclusions for Pre-Existing Conditions
If you have a pre-existing medical condition, before purchasing an insurance policy, you may wish to review the policy’s exclusion clauses regarding long-term disability benefits.
Many insurance companies have exclusion clauses for pre-existing conditions. Full exclusion clauses allow insurance providers to deny claims for long-term disability benefits for any medical condition caused by a policyholder’s pre-existing condition, regardless of how long they’ve paid into their policy. Generally, policies that include a full exclusion clause provide a list of conditions that they will not cover, such as diabetes or cancer.
Some insurance policies may include only a limited exclusion clause for pre-existing conditions, meaning that depending on the length of time policyholders have paid into their plans, they may eventually become eligible to receive long-term disability benefits for medical diagnoses related to their pre-existing conditions. However, in these cases, policyholders with pre-existing conditions may have to wait several years before qualifying for long-term disability benefits.
Contact Preszler Injury Lawyers with Questions
If you’re having difficulty deciding which insurance policy will be best for you, Preszler Injury Lawyers may be able to offer useful advice and assistance. To discuss the difference between claims, or ask questions about your specific circumstances, call Preszler Injury Lawyers today 1-800-JUSTICE.
