Most Florida residents know little about how long-term disability benefits work until they find themselves needing them. These benefits seek to replace a certain percentage of your income if you become unable to work due to illness or injury. Below are a four issues you may not be aware of regarding long-term disability benefits:
1. Wage replacement is not 100%
Many people may believe that their pay will not be affected much if they suffer an injury or sustain an illness. However, per the Patient Advocate Foundation, long-term disability benefits typically only replace between about 50% and 70% of the income you brought in before suffering your injury.
2. Signing up
If your employer does offer long-term disability insurance, be sure to sign up for it during the initial enrollment period. If you don’t you could run the risk of your health insurance denied if the provider claims you have a pre-existing condition.
3. Anticipate a waiting period
It is not uncommon for long-term disability insurance plans to have a waiting period. The typical waiting period most long-term disability insurance providers observe falls somewhere between three and 26 weeks. This is the same amount of time you may be able to receive short-term disability benefits before collecting long-term ones.
Some insurers that offer long-term disability require policyholders to apply for Social Security Disability Insurance from the U.S. Social Security Administration before seeking a claim for benefits. Those who do apply for government benefits and receive approval, it’s important to note that it could reduce the long-term disability amount from your insurer.
There are important rules and deadlines associated with applying for long-term disability benefits. Failing to follow rules or meet deadlines may lead to the denial of your long-term disability claim.