Is There an Age Limit for Long-Term Disability?

People wonder is there an age limit for long-term disability? Long-term disability is an insurance policy designed to replace your income so that you can pay your living expenses while you’re unable to work. Generally, the payments are about 60% of your income. They provide cash directly to you to pay your bills as you would if you were still working. You may also use it to cover new occupational training or other assistance you may need if you believe you will return to work later.

Is There an Age Limit for Long Term Disability?

This means that you can avoid burning through your savings for your retirement, your children’s education funds, or other future goals.

But is there an age limit for long-term disability? Will it last year, two years, or longer, or will you age out of your policy? There are several factors involved in any LTD policy, including an age limit.

How It Works

Most people have a long-term disability policy through their employer. Others, such as self-employed individuals, may purchase a policy on their own. In many cases, they are accompanied by short-term disability policies. Generally, when the short-term disability policy ends, usually within three to six months, or as long as twelve months, the long-term disability policy begins.

Long-term disability policies usually have a six-month waiting period before payments begin. This is because most people have a short-term disability policy already in place. Long-term disability policies are written to accommodate short-term policies.

Once the waiting period is over, your long-term disability benefits should begin. The benefits are supposed to be paid for as long as you are disabled. Of course, the length of your benefits will also depend on the type of disability you have, how long it’s expected to last, and how disabled you are. A policy that’s written so that you could perform any type of work is different from one that only pays when you are unable to work in your own occupation.

For someone who has a much longer disability, that either keeps them out long term or prevents them from returning to work permanently, the long-term disability policy generally pays for the rest of your disability.

The End Of The Policy

For the person who is disabled for the rest of their working life, a long-term disability policy will continue to pay until the individual is eligible for retirement. Once the individual reaches the point at which they would normally retire, the policy will end, and the status changes to “retired.” The now-former policyholder then begins receiving Social Security and other retirement funds. This can include a pension, a 401K, or other retirement supplements.

However, the age limit for the long-term disability policy will also depend on the policy itself. Some policies end at age 65 or 67 when most people are expected to retire. However, it is possible to purchase a long-term disability policy with an age limit of 70.

Some policies may change their benefit payment schedule if you are disabled after the age of 62. Benefits may be reduced, or given a limited number of months until you are eligible to retire. You can also voluntarily retire before you reach the end of your long-term disability benefits.

Other policies will indicate the number of months for which benefits are payable if you become disabled at or after the age of 65, such as 18 months. Again, this all depends on the individual policy. It’s important to review your policy to see if the insurer will consider your age when determining if you meet their definition of “disability.”

Your age may impact your ability to learn a new occupation or skills, especially if you have only worked in one field for most of your professional career. This may limit the alternative occupations that you may be able to perform after becoming disabled.

Your Houston LTD Disability Attorney

If you’re facing an absence from work due to a long-term disability but are having trouble with the insurer paying your benefits, we’re here to help. We can help with all facets including questions about  the age limit for long-term disability.

We’ve helped over 4,000 Houstonians have received the LTD benefits they need. The Herren Law Firm can help you with your application, appeals and help you through the process, and give you one less thing to worry about. Contact us today at 713-682-8194 (or use our online contact form) to schedule your free consultation. There’s no obligation and no up-front fees. We only collect if we win your case.

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