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How Do Insurers Calculate Long-Term Disability Payments?

How Do Insurers Calculate Long-Term Disability Payments?

While long-term disability insurance policies may vary somewhat in their terms, long-term disability benefits available through an employer usually replace about 60% of your pre-disability pay, although some policies will provide only 50% of your pay, and others will provide up to 80% of your pay. These percentages also may fluctuate based on other factors, if, for example, employees receive a cost-of-living increase, bonuses, or commissions. Whatever the amount may be, however, there typically is a monthly maximum limit to long-term disability benefits.

If you only are able to work a reduced number of hours due to your disability, you might receive a reduced amount of long-term disability benefits. In other words, the part-time earnings often will offset the long-term disability benefits that you are receiving. Some plans do not permit recipients of long-term disability benefits to work even part-time, and it could be a basis for losing access to benefits.

When you receive long-term disability benefits, you also may be eligible to receive other disability benefits, such as Social Security disability benefits or worker’s compensation benefits. In fact, your long-term disability plan may require you to apply for other available benefits based on your disability as a condition of continuing to receive benefits. However, your long-term care insurer typically will reduce the amount of long-term disability benefits that you receive by any amount of other disability benefits that you receive, dollar for dollar.

When you are disabled and unable to work, we know that every dollar can be crucial to the support of your household. Therefore, you need legal advice about building the most effective ERISA long-term disability claim possible. Bonnici Law Group provides skilled, aggressive legal representation on a regular basis for individuals who are seeking long-term disability benefits under insurance policies governed by ERISA. Our priority is to represent your interests and protect your rights to the benefits that you deserve. Call us at 619-259-5199 and schedule an appointment to meet with us about your case today.

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