Long-term disability benefits payments are issued to qualified recipients on a monthly basis. Payments are not issued weekly.
When individuals contract a serious illness, sustain a debilitating injury, or develop a severe mental health condition that prevents them from performing the duties of their job for an extended period of time, the worry of paying for monthly expenses can cause additional stress and anxiety. If eligible, these individuals may receive some financial relief in the form of monthly long-term disability benefits payments.
You may be eligible for these benefits if you or your employer have been paying into an insurance plan that covers long-term disabilities. Many employers—especially large companies—offer insurance to their staff members through a group plan. Some employers may even pay all or a portion of the policy’s monthly premiums.
If your employer does not offer disability insurance, or if you are self-employed, you may choose to purchase your own private policy.
Things You Should Know About Your Monthly Benefits
Similar to Employment Insurance (EI) benefits, long-term disability benefits are designed to replace only a percentage of a recipient’s regular salary and not the full amount. In Canada, most long-term disability insurance plans replace 60-70% of recipients’ normal income. However, if the insurance plan caps their monthly compensatory payments at a certain amount, policyholders with higher incomes may not receive the full 60-70% of their regular salary. In these cases, these high-salaried individuals with insurance plans that cap payment amounts would simply receive the highest monthly payment available.
Waiting Periods for Long-Term Disability Benefits Payments
Eligible claimants who apply for long-term disability benefits following a serious medical diagnosis may be required to wait through a long elimination period before receiving their benefits payments. The length of these elimination periods is often determined by the cost of an individual’s monthly premiums. When selecting their level of insurance coverage, new policyholders may choose plans with a shorter elimination period, but this feature may increase the price of their monthly premiums.
Many policies will not consider a claimant eligible for long-term disability benefits until they have exhausted the other compensatory options available to them, including paid sick leave, vacation time, and short-term disability benefits.
How Long Do Long-Term Disability Benefits Last?
The duration of long-term disability benefits varies between insurance policies. Many eligible recipients could collect monthly compensation for up to two years after receiving a medical diagnosis that prevents them from performing the duties of their own occupation. However, after these two years have passed, the insurance company may decide to terminate the recipient’s benefits if their medical condition allows them to work in any job, even one unrelated to their current position.
Other insurance plans may provide long-term disability benefits to recipients for a predetermined period of time, or until they reach the age of retirement.
Call Preszler Injury Lawyers Today
Forewarned is forearmed. Understanding the terms of your insurance plan may prove useful in the unfortunate case that you ever need to submit a claim for long-term disability benefits. If you have questions about your plan or the options that may be available to you, a long-term disability claims lawyer may be able to review your policy’s terms and provide you with assistance.
If your claim for long-term disability benefits has been denied, Preszler Injury Lawyers may be able to help you appeal the insurance company’s decision. To learn more about options that may be available to you, call Preszler Injury Lawyers today at 1-800-JUSTICE for an initial, free consultation.