Long-Term Disability Question


People ask many questions regarding the long-term disability insurance plans and try to find how suitable the plans would be for them to enroll with it. There are both private and the federal long-term disability insurance plans for the people. There are many doubts regarding the long-term or short-term disability plans. Most of these doubts are regarding the eligibility and benefits while enrolling for a long-term disability insurance plan. Some of the commonly-asked questions regarding long-term disability coverage provided by the employer are:

Who is eligible for getting or participating in this plan?
The answer to this long term disability question is a bit confusing. Yet, the common perception is that any person who has already worked for one year, 17.5 hours a week is eligible for this plan. The variation occurs with the company and the kind of employment. You employer’s plan depends on the infrastructure built by the organization and the capital reserves the company has reserved for employee benefits.

What’s the premium rate?
This also depends on the nature of the job and the income of the employer. The private insurance companies determine the premiums based on your age, job history and medical history. Higher the premium rates, the higher is the percentage of benefits you receive.

When I'm eligible for the plan?
The answer to this long-term disability question is simple to answer. If you are employed, the plan begins from the very first month, after you have completed one year of service. If you are self employed, you can start the private insurance any time you want.

When does the coverage of the benefits end?
The coverage terminates once you are fit and can work again or when you are on the first month after completing 65 years of age.

What’s the maximum benefit of long-term disability coverage?
Generally, it’s up to 60% of your weekly salary or monthly salary. But in some cases, the maximum benefits can rise to $ 220,000. It also depends on your salary and other benefits you received from the organization.