In the event that unexpected health issues prevent you from earning a living, long-term disability benefits may provide you with much-needed financial stability. Many plans cover a large percentage of your regular income, which may grant you a degree of security after developing a serious illness or sustaining a debilitating injury.
The benefits you may be eligible to receive from your long-term disability insurance provider may vary depending on your specific plan. Insurance coverage is regulated by each province’s Insurance Act, and so terms may vary based on where you live. Furthermore, insurance companies offer policyholders a variety of options for coverage, meaning that policies may not even be comparable to other plans issued by the same carrier.
Understanding the Terms of Long-Term Disability Benefits Policies
Depending on the terms of individual policies, the severity of a claimant’s medical condition may or may not entitle them to receive long-term disability benefits. Certain plans only provide benefits to policyholders whose medical condition is considered to be a “total disability,” meaning it prevents the claimant from performing the duties of any type of job.
Other plans may offer more lenient eligibility requirements. In these cases, if an employee’s medical condition prevents them from performing the duties of their current job for an extended period of time, they may qualify for long-term disability benefits. In these cases, however, their eligibility requirements may be altered after receiving benefits for more than two years.
Insurance policies may also feature exclusion clauses for pre-existing conditions, namely medical conditions sustained by a policyholder before their enrollment in the insurance plan. If policies fully exclude coverage for pre-existing conditions and your established medical condition was caused by your long-term disability, you may not be eligible to receive benefits payments.
However, some insurance policies offer “limited exclusions” for pre-existing conditions. In these situations, you may still be able to collect long-term disability benefits for pre-existing conditions after being enrolled in the insurance plan for a predetermined period of time.
Being Financially Prepared for a Long-Term Disability
According to a recent Canadian Survey on Disability conducted by Statistics Canada, 22% of Canadians, roughly 6.2 million people, have at least one disability. This study also reports that the employment rate for working-age adults with disabilities is 59%.
According to the Financial Consumer Agency of Canada’s 2019 Canadian Financial Capability Survey, 64% of Canadians reported having an emergency fund that could cover the costs of their monthly expenses for three months. However, those who earn less than $40,000 a year or have not paid off their mortgages are less likely to have access to $2,000 for “unexpected expenses.”
No one expects to receive a medical diagnosis or sustain catastrophic injuries, but the truth is, no one is invulnerable to sudden illness or accidents. If a sudden medical condition prevents you from earning a paycheck for several months, long-term disability benefits can provide financial and emotional relief.
Contact Preszler Injury Lawyers Today
If you have received a serious medical diagnosis and are not sure if you qualify for long-term disability benefits under your current insurance policy, Preszler Injury Lawyers may be able to review the terms of your plan and provide useful assistance and advice. If your claim for long-term disability benefits has been denied, Preszler Injury Lawyers may be able to help you appeal your insurance company’s decision. For a free, initial consultation about your claim, call Preszler Injury Lawyers at 1-800-JUSTICE.