Long Term Disability LTD Frequently Asked Questions
Short-term disability is for situations where you temporarily cannot work for health reasons. It usually only lasts a few months. Long-term disability is for situations where you can no longer perform your job for a longer term, usually a year or more.
Many policies will pay up until around the retirement age. Some policies will pay for life. If you are already nearly retirement age, many policies will have a set time limit, i.e. 12 to 24 months.
It depends on the policy. Many policies will pay 60 percent of your wages. Your policy will specify the amount or percentage of your wages that LTD benefits will replace.
Can I collect Social Security Disability Insurance (“SSDI”) benefits and LTD benefits at the same time?
Yes, although many policies will reduce monthly LTD benefits by the amount of monthly SSDI benefits. For example, if your LTD benefit is $2,000 per month and your SSDI benefit is $1,500, LTD company will pay you only $500 per month, instead of $2,000.
I have been receiving LTD benefits. Now I was awarded SSDI backpay and LTD company wants that money back. Is it legal for them to do that?
Yes, if you signed up for policy which requires reducing LTD benefits by the amount of SSDI benefits.
I already spent my SSDI backpay. Now I received a letter from LTD company asking for that money. What do I do?
Make sure that the policy you signed up for contemplates the offset with SSDI and verify whether the LTD carrier performed the calculations correctly. You can ask the LTD carrier for a copy of its calculations. LTD companies may partially or completely stop paying LTD monthly benefits to credit them against the amount owed.
Some companies will still pay a minimum LTD benefit amount. This minimum benefit could be a set amount, i.e. $100 per month, or a set percentage of your LTD benefit, i.e. 10 percent.
Yes, although many policies will impose an offset.
Yes, policies usually provide a full list of the benefits which LTD company will offset against the LTD benefits.
LTD benefits are usually taxable if your employer paid the whole or part of your LTD premium.
ERISA stands for the Employee Retirement Income Security Act of 1974. It governs many LTD policies, but not all of them.
It depends on the terms of the policy. Some policies will allow working so long as you are earning below a certain percentage threshold of the amount you earned when you became disabled.
Sometimes employers offer Life Insurance Waiver of Premium coverage along with the LTD plans. If you have such coverage and prove that you are disabled under the applicable policy, you will be able to keep the life insurance coverage without having to pay the premiums.
It is a condition for which you received treatment before the effective date of your LTD coverage. If you become disabled based on the “pre-existing condition”, some policies will require the coverage to be effective for a certain duration of time before you could become eligible for LTD benefits.
Yes, but policies usually require you to go through the administrative appeal process with the LTD carrier before you can file a lawsuit against it.
What if I feel my questions are not answered in this Q&A?
Please call your Avard Law case worker or attorney at (239) 945-0808 and tell them the question for which you do not understand the answer. Or ask a question not covered by the Q & A questions. Please note that your calls should be answered within 48 hours. Thank you for your assistance. We are working very hard to help you win your case.
Board Certified in Social Security Disability by the NBTA. Licensed in both Florida and Massachusetts. Accredited Veterans’ disability attorney.
Board Certified in Social Security Disability by the NBTA. Licensed in both Florida and Michigan. NOSSCR Board of Directors Member.
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