When you qualify to receive long term disability (LTD) benefits, this type of insurance policy may pay for about two-thirds of your usual salary or hourly wages until you return to work, reach age 65, or otherwise no longer qualify.
The amount you receive each month through this type of program may go up annually thanks to cost-of-living adjustments, or go down because of other benefits you receive. How your LTD monthly payment may be calculated depends on the details of your policy.
In general, you may expect to receive between 50 and 75 percent of the pay you earned from working, or up to a maximum preset amount. Even if you qualify for income from other programs, offsets may keep your income within this same range.
Considerations When Calculating LTD Monthly Payments
Disability insurance policies are designed to provide a portion of the policyholder’s regular income for a specified period if they:
- Have an injury or illness that temporarily prevents them from working their job
- Have a permanent injury or long-term illness that prevents them from working their job or in any other occupation
Long term disability insurance plans may have a waiting period of 30 to 180 days before they become payable. Details of the exact waiting period of your plan, and how your LTD monthly payments may be calculated, are located in your policy.
Once you begin receiving long term disability benefits, you may receive an increase each year, known as a cost-of-living adjustment. This may increase your benefits by one to three percent, depending on many factors.
You may also have offsets that might reduce your LTD benefits. Some long term disability insurance policies include clauses about your maximum benefit amount. They may also weigh your other sources of income or financial benefits and reduce your LTD benefits if you receive payments from another source.
Even if you receive approval for multiple streams of income during this period, you may only be able to bring home 50% to 75% of the wages you most recently earned from working. Your insurance plan administrator may be able to help you calculate exactly how much offset may occur based on your other benefits.
You May Qualify to Fight an LTD Benefit Denial
If you are unable to work your job because of your diagnosed chronic disease or condition, you may qualify for long term disability benefits based on the rules outlined in your policy. Unfortunately, some qualified workers receive a denial when initially applying for these benefits. If this happened to you, you may have options to fight the denial and possibly recover compensation to cover your past and future disability benefits.
You may be able to file an internal appeal with the insurance carrier or file a lawsuit to pursue a settlement or award. Which of these options is right for you depends on the facts of your case. You may have a better chance of recovering compensation if a court gets to rule on your disability eligibility rather than if the insurance company that denied your original claim has a chance to decide again. An Ontario LTD payments lawyer may be able to help you decide which action to take and represent you in either process.
Time Limits on Filing Suit
It is important that you act quickly in your case. There are time limits for filing a lawsuit against your long term disability insurance carrier. Generally, this deadline is two years from your denial date, according to Ontario law.
Appeals may not affect this deadline, so you may lose your right to take action if you do not act quickly. Reach out to a long term disability lawyer about your options for fighting a denial today.
Discuss Your Case with an LTD Appeal Lawyer
The team from Preszler Injury Lawyers may be able to help you understand your options for fighting a denial of your LTD benefits and possibly pursuing a payout. We may be able to build an argument for your benefit eligibility and negotiate a fair settlement on your behalf.
Our team serves Ontario. We can come to you if your medical condition prevents you from traveling to our office.
Let Preszler Injury Lawyers review your case today. Call (416) 364-2000 for a free initial consultation. Our firm works on a contingency-fee basis with no up-front payments required. You only pay us if your case succeeds and you recover compensation.