What should I look for in a Long Term Disability policy?

If you are considering purchasing a Long Term Disability Insurance policy, there are a few things you should consider prior to making that purchase.  Indeed, a Long Term Disability insurance policy is there to protect you should you become so injured or ill that you are no longer able to work.  You may not realize it, but there is a significant chance for any worker to become disabled.  In fact, it is estimated that you have a one in five chance of becoming disabled and that the average long term disability absence will last about 2.5 years.  Many individuals are covered under a long term disability policy provided by their employers.  Some individuals chose to purchase their own long term disability policy.  Regardless of how you acquire your Long Term Disability policy, it is important that you understand the coverage that you are receiving.

The following are a few things to consider with respect to your long term disability policy.

• What types of disabilities are covered?

When it comes to coverage, it is always important to determine what types of disabilities are covered and how they are covered.  Many policies place a 2-year limitation on mental health impairments.  Other policies do not cover conditions that are based solely on self-reported symptoms, such as chronic pain, chronic fatigue syndrome or fibromyalgia.

• Does the policy cover partial disability?

Some policies will only cover individuals who have become totally disabled.  Other policies will pay benefits to individuals who are partially disabled and therefore unable to work as they did in the past.

• What is the length of coverage?

Different policies cover individuals for different amounts of time.  Many policies provide for different coverage based on the alleged impairment.

• Is the policy "non-cancellable" or a "guaranteed renewal"?

Some policies are sold on a non-cancellable or guaranteed renewable basis.  If the policy is non-cancellable, the insurer cannot cancel coverage or raise the insured's premiums.  If the policy is guaranteed renewable, the insurer is required to continue covering the insured so long as the premiums have been paid.

• What is the standard for disability -- "own occupation" or "any occupation"?

Many policies will allow the insured to only demonstrate that they are incapable of performing their own occupation for the first 24 months of coverage.  After 24 months of coverage, many policies often require that the insured demonstrate that he or she is unable to perform any occupation in order to continue coverage.

This is NOT legal advice.  This blog provides general information relating to Long Term Disability claims.  To discuss your particular circumstances and claim, please contact a lawyer in your area.