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Do I Need Long-Term Disability Insurance Coverage?

Do I Need Long-Term Disability Insurance Coverage?

Although most people don’t have long-term disability insurance coverage, this coverage is arguably one of the most essential types of insurance coverage that you can have. People tend not to purchase or opt for coverage offered by their employers because they do not believe that they will ever need or use it. However, statistics point to the opposite conclusion. According to the Social Security Administration, one in four adults age 20 and older will become disabled and unable to work before they reach the age of 67. Likewise, over half the Americans whom the Federal Reserve Board surveyed have no savings or other means of funding a three-month absence from work.

As a result, more and more employers are choosing to automatically provide LTD benefits to their employees at no cost to them, unless the employees want to opt out. By providing automatic enrollment, employees are far more likely to have LTD coverage. Even if employers present LTD coverage as an option, many employees will discard it in favor of other forms of insurance. Furthermore, at present, if individuals have no employer-provided LTD benefits plan, the likelihood of them purchasing individual policies is slim.

Even so, when employees reject LTD coverage at their initial hire by a new employer, they may have a more challenging time getting coverage in the future, even during open enrollment periods. An increasing number of insurance companies are requiring that applicants provide proof of good health or “insurability” to minimize their risk when providing coverage. Likewise, many policies may bar coverage for preexisting conditions, which can be a deterrent to individuals wishing to obtain coverage.

Bonnici Law Group has the experience and knowledge that you need when you are filing a claim for long-term benefits. We know how to help you create and maintain a strong claim for benefits and obtain the best outcome possible in your case. Do not hesitate to contact Bonnici Law Group at 619-259-5199 or help@bonnicilawgroup.com.

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