You may have heard from somebody or on a page on the Internet that long-term disability will pay for everything when you have been seriously injured or fallen ill, and are no longer able to work. Many people are happy to hear that long-term disability payments will help them get back on their feet when they are suffering from injuries or illness that could be long-term. The truth of the matter is that long-term disability does pay for a percentage of your salary or wages, but not all of them. And the other fact is that it can be adjusted, but other aspects of your life can also offset it. Today we want to focus on the main things that long-term disability actually pays for, and what it could mean for you.
When it all boils down to it, your long-term disability plan will only pay a certain percentage of the earnings that you received before you were deemed disabled. In fact, many people find out that this percentage lies somewhere in the range of 50-80%. There is something known as the “maximum monthly payment,” which will help dictate how much you will receive on a monthly basis when all is said and done. That usually falls somewhere within the range of $4,000-$25,000 per month based off of what you made beforehand. This is due to the fact that many policies will factor in more than just your regular income – they also consider bonuses, commissions, and so much more.
There is also some good news that coincides with this: You should expect your benefits to increase over time after you have received them and have been living with them for a while. Every year, benefits will increase by about 1-3% based on something known as COLA, or the cost-of-living adjustment. This occurs due to inflation, because we all know that prices will increase for everything over time, and companies want disability payments to reflect these changes that we go through in everyday life.
Of course, long-term disability doesn’t just increase over time. It can change adversely, meaning you may receive less, due to many different factors. Here are some of these factors, explained:
SSD Benefits: If you receive long-term disability, then you were probably also told that you must file for social security disability benefits. This means that your disability benefits could be offset when everything is factored in. Where you gain more in social security, you will earn less in long-term disability.
Earned Income: You could also get less on your disability if you receive earned income. Returning to work on long-term disability is a risky thing to do if you aren’t sure that you will be able to handle it because it could change the outcome of all benefits you receive. If you have something known as the “own occupation” policy, you could be approved to work without losing your benefits, but this is only when you have obtained that part of the policy. Until then, it comes with risks.
When it comes to long-term disability, you will usually find that not everything is certain or set in stone – and it is forever changing. This is why it is always important to have the help of an attorney on your side who understands these benefits inside and out and can help you every step of the way. At Edelstein Martin & Nelson, we want to help you from start to finish as you understand your claim for LTD and get back on your feet. Call us today for more information at 800-300-0909.