The average length of a disability that keeps people from working is about three years, and depends on the type of disability they have and their age. As recoveries go, a person in their mid-twenties usually recovers from a disabling illness or injury faster than a person in their mid-fifties or sixties. But depending on the type of policy you have, long-term disability (LTD) may last six months, a year, or longer. Will it last long enough?
What Type Of Policy Do You Have?
There are two types of policy coverages.
- Your policy may cover you for “any occupation,” meaning that you’re covered as long as you can’t work any job doing anything, whether or not it’s related to your current job and/or vocation, for the same or less money.
- Your policy covers you for “own occupation,” meaning that you’re covered as long as you can’t perform your current occupation. Whether you can perform another occupation for which you’re qualified isn’t a determining factor.
Some policies combine the two, with “own occupation” for the first two years, and “any occupation” after that. Other policies offer a cost of living increase as an optional benefit that may cost more.
How Long Do LTD Benefits Last?
Most group LTD policies last until age 65, or until your actual retirement age. The presumption is that once you’re retired, you no longer need the income from your employment.
Most people assume they will retire at 65, but SSA has changed retirement ages for different individuals. Currently, individuals born in 1955 or later can retire at age 66 and 2 months. If you were born after 1960, your retirement age is 67.
Look for LTD benefits to end, with some exceptions, at your time and age of retirement.
Benefits Beyond 65
Purchasing a long-term disability policy with a benefit period longer than five years is more expensive, but comes with an additional benefit. You can choose a “lifetime” benefit period that will pay you as long as your disabled, even after retirement age, as long as you were disabled before the age of 60. This will be especially helpful if your disability is expected to last for many years, or is considered permanent.
These kinds of policies tend to be much more expensive, and could be harder to find. If you’re unable to get one, at least purchase a policy that will pay you until your legal retirement age. With an employer’s policy, your status will automatically change to “retired” once you reach that retirement age bracket.
Most LTD policies pay 60% to 70% of your regular salary and none will pay 100%. Different policies have different exclusions and restrictions.
Some policies have “level premiums,” which stay the same for the life of the policy. This is useful
Additional information, and a checklist for buying a policy, is available at the Consumer Federation of America’s website.
Houston Disability Lawyer Can Help With Your LTD Claims
Our Houston disability lawyer William Herren is experienced in handling all types of disability applications and claims including LTD claims, and our law office has helped more than 4,000 Houstonians, too. Call The Herren Law Firm today at 713-682-8194 (or use our online contact form) to schedule your free consultation with one of our disability attorneys. There’s no obligation. There are no up-front charges, because we’ll take your case on a contingency fee basis. You only owe us a fee when we win your case.
