If you became injured or ill and could no longer work, how long would it take before your savings was exhausted? For many workers, this frightening scenario is just a few steps away from becoming a reality, as around one in every four workers becomes seriously injured or made ill at some point during their career. And while life insurance is often touted as a must-have for anyone with bills to pay or dependents to support, disability insurance is often an afterthought – even though today’s workers, on average, are far more likely to be disabled during their working life than to die prematurely.

What should you know about the different insurance policies available? How can you know whether disability insurance is a good idea in your specific situation? Learn more about the ins and outs of long term disability policies and what claimants should consider when taking out a disability insurance policy.

You can buy disability insurance up to 66 percent of your monthly income, but there is usually a cap.

There aren’t many (or any) long term disability insurers that pay out at 100% of the claimant’s pre-disability income. In most cases, the best a claimant can do is to recover about two-thirds of their income, up to any monthly cap the policy imposes. This means that if a high-earning dentist or doctor was claiming disability benefits but their policy had a $3,000 per month cap, the maximum amount they could recover would be $36,000 per year, far less than their pre-disability income.

The definition of “disability” varies in every disability policy and the best definition is a true own occupation definition of disability.

Each policy sets forth its own definition of disability and what qualifies a claimant to receive benefits under the policy. For most disability policies, a claimant is disabled if their injury or illness prevents them from doing their current occupation. These policies are known as “own occupation” disability policies and rely on a nationwide standard for how a certain job classification is performed.

This definition isn’t necessarily static. Many long term disability insurers shift to a new definition of disability if the claimant has received benefits for a substantial amount of time (usually two years). After this, the benefits may stop unless the claimant can show that they can no longer perform any occupation (“any occupation” disability policies). This is a higher hurdle, and it’s important to seek legal advice before you head down this road. Give the experienced attorneys at Dell & Schaefer a call today to schedule your free consultation.

Individual disability policies are the best and you should avoid ERISA disability policies if possible.

There are two main types of long term disability insurance policies – individual policies, which are purchased on the open market, and group disability (or ERISA) policies, which are usually offered as an employee benefit through your employer. Generally, an individual disability policy will be more expensive than an ERISA one, but the adage “you get what you pay for” can come into play. Disability claimants seeking benefits under an individual policy have quite a few more rights than those seeking benefits under an ERISA policy, from a more generous standard of review to a different definition of “disability.”

Whether you’re just thinking about buying a disability insurance policy or are wondering whether it’s’ time to file a claim, look no further for help than Dell & Schaefer. We have experienced attorneys covering all 50 states, and these attorneys have helped thousands of others recover benefits under a long term disability policy. Give us a call today to schedule your FREE no-obligation consultation.