Private Disability Policies

While many people will file for Social Security Disability benefits when they are unable to continue working, an individual may have other options. One of these options is available through a private disability policy. Long-term disability benefits can often be obtained at the same time someone is collecting Social Security Disability.

Long-term disability policies are generally divided into two types of potential coverage. One is general disability. This refers to the inability to perform the duties and responsibilities of any type of occupation. An occupational policy refers to the inability to perform the material duties of one’s own occupation or specialty such as orthopedic surgeon.

Most current policies carry language that indicates that an individual policy-holder must be unable to perform the significant duties of his or her own occupation for a period of two years. Following that two years the individual must then be unable to perform any type of job.

There are also policies that allow for residual disability. In these cases the individual must have an injury or impairment that does not allow them to perform some of the material duties of their job or not be able to work for the same number of hours resulting in an income loss. If this occurs, the individual may be able to obtain benefits to compensate their loss of income.

Most policies have an age limit as to how long one can collect on their policy. Most policies either completely cut off benefits at age 65 or sharply curtail them. In the case of mental impairments, almost all policies limit an individual to twenty-four months of benefits. While courts have repeatedly upheld this practice, insurance carriers at time opine that disability is due to a mental impairment, when, in fact, it may not be.

Another factor impacting applicants is whether the person has a group or individual policy. Group policies often only pay a percentage of relevant earnings. Therefore, it advisable for people to carry their own individual policy in addition to what their employer may provide.

One type of suit that involves these long-term disability policies occurs under the Employee Retirement Income Security Act (ERISA) law. ERISA applies when there is an employee benefit plan. This has been found to apply usually when an employer purchased the insurance policy that covers his or her employees.

Each long-term disability policy is different. Sometimes these differences are critically important. Therefore, it is advisable to seek an attorney to help you analyze the provisions of your particular policy.

At Silver and Silver, we have been assisting the disabled with their Social Security disability benefits, as well as Short and Long Term private disability plans for more than 35 years.