What Is Employer-Paid Long-Term Disability?
Employer-Paid Plans Are Taxed Differently
You may purchase an LTD insurance plan through an insurance company or private broker. This coverage can be provided as supplementary coverage for the employee or as a group disability insurance benefit through your employer. If your employer purchased the insurance policy, it may pay insurance premiums in whole or in part. This arrangement depends upon the benefits packages offered by the company.
If your employer pays the premiums, then your benefits payments are taxable. If you paid the premiums, then it is not taxable. Tax issues become more complex if you and your employer shared the cost.
Employer-Paid LTD May Cover You if You Are Unable to Work
In general, LTD policies may provide you with benefits if your injury or illness prevents you from working. However, there are some policies that exclude specific illnesses or exempt injuries that prevent you from drawing upon benefits in the event that they arise.
In conjunction with your medical provider, you may receive employer-paid long-term disability if you may prove that you are unable to work. Your ability to receive benefits hinges upon this threshold.
If you have questions about what you may expect to receive, review your policy carefully to determine what it includes and excludes. You may also discuss your options with a long-term disability lawyer if you find that there is a discrepancy in the benefits you are receiving when compared to the language in your policy.
The Waiting Period for Employer-Paid Long-Term Disability
After making a claim, you must wait to receive benefits as the insurer evaluates your claim. This process entails a review and decision. The waiting period is mandatory.
LTD requires you to spend a significant time away from work before you may receive benefits. The waiting period for LTD benefits is called an elimination period and ranges from 13 weeks to 12 months.
The Amount Covered by Employer-Paid Long-Term Disability Plans
Benefits from an employer-paid LTD plan generally cover between 60 to 70 percent of the salary you collect prior to going on disability benefits.
However, the policy may limit your payments depending upon its monthly maximums. You may read your policy to find out what your limits are. If you believe that you are receiving less than what you should, discuss your situation with a long-term disability claims lawyer for specific legal advice.
The Duration for Employer-Paid LTD Benefits
Your plan may last depending upon the policy your employer purchased. There are some policies that limit your timeframe to five or ten years, while there are others who pay you until the age of 65.
Maintaining Your Hours for Your Employer-Paid LTD Benefits
After an injury or illness, people sometimes make the mistake of reducing their workload, hours, and responsibilities. While it seems completely rational to do so, reducing your wages or hours worked means that it may be more difficult to be classified as disabled.
It may also be more difficult to receive benefits based on your previous earnings since the capacity was reduced beforehand. You might be able to get more out of your employer-paid policy by filing at your regular occupation and work level.
Contact Preszler Injury Lawyers for a Free Initial Consultation About Your LTD Benefits
Your long-term health is a top priority when you hire the legal team at Preszler Injury Lawyers. Our long-term disability claims lawyers focus on putting you and your family at ease as you pursue the benefits that you deserve.
Preszler Injury Lawyers invites you to contact our legal team for a free initial consultation. Request yours today by calling 1-800-JUSTICE.