Many employers offer long-term disability (LTD) insurance policies intended to protect an employee’s financial interests in the event they cannot work due to a lasting mental or physical disability. But how much can you expect for your LTD payments if you become disabled? It is important to be familiar with your right to benefits so you can make sure you receive the full amount you deserve if you can no longer work. Many factors can impact this payment amount, as follows.
Each LTD policy should set out the terms for expected payments. Some policies will pay a fixed amount each month regardless of how much you earned prior to your disability. However, most plans will base your payments on the salary you were earning, such as providing a percentage of your prior monthly earnings. Some policies might provide as much as 80 percent of your monthly salary, while others might only pay out 50 percent of your monthly earnings. Always check the terms of your policy, so you know what to expect as your payment amount.
Some LTD policies will regularly adjust benefits based on the changing cost of living. Changes for COLA often happen annually and use the Consumer Price Index to adjust payment amounts for inflation and other factors, which might amount to one to three percent per year.
You can be sure that your LTD insurance company does not want to pay full benefits if you are also receiving disability benefits from other sources. Most policies require you to apply for Social Security Disability benefits, and the insurer might even assist in ensuring that your application is successful. If you qualify for SSDI benefits, your private LTD benefits will often be reduced according to the amount of your SSDI benefits. Your LTD insurer might also seek recovery for back benefits provided by SSDI.
LTD payments might also be reduced if you are receiving benefits from retirement plans, workers’ compensation insurance, injury lawsuit settlements or awards, or other sources.
Some people might still be able to work with their disability, though they need to switch to a job that pays substantially less than your previous employment. In this situation, your LTD insurer might provide partial benefits, which are reduced by the amount you are currently able to earn. People who can only earn a small portion of their previous income might still qualify for their full LTD payments.
At The Garner Firm, Ltd., we work to ensure that employees in the Philadelphia area receive the full LTD benefits to which they are entitled under ERISA. If you have concerns about your benefits or payment amount, please contact us to discuss the matter with a long-term disability lawyer.
Adam and his team are great. They did an excellent job helping my family when we were really losing hope. Adam is very professional and has excellent knowledge to protect your rights. If you choose Adam you will talk directly with him. It was a truly pleasant experience. I’m extremely thankful that I chose the Garner firm. I highly recommend them.
Adam Garner provided excellent courteous and considerate service in helping me resolve a long term disability claim. He was accessible, knowledgeable and exercised the good judgement necessary for us to be successful. I heartily recommend his expertise and services
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