Disability Income

If your question pertains to a private disability policy, the policy language will generally state that a claim for benefits must be filed "as soon as practicable". Group policies generally have similar language. Broadly, this suggests some flexibility based upon the circumstances of the illness or injury that resulted in the disability. However, be certain to read the policy carefully to ensure that there is not a more specific tome frame for filing the claim.

yes/

I was at job for 2 years, left for 2 months, came back and have been there 6 more months. Now I am ill and employer denied my short term disability that I have paid into for 3 years (except the 2 months off last year). Should I pursue? I have been there a total of 3 years.

Yes - that is the purpose of disability insurance. It replaces a portion of your income if you become unable to work because of a covered accident or illness. Contact an insurance agent to get a policy. Coverage needs to begin prior to becoming disabled.

Every policy and insurance carrier is different. Private policies have income percentage limits, and monthly benefit caps. For example, many policies will replace up to 70% of monthly income. The monthly benefit cap could be as low as $5,000 per month, or as high as $15,000. People with higher incomes are often subject to the monthly benefit cap.

Then the person or company paying for the policy determines what level of income replacement fits their budget. Higher benefit amounts cost more. Many policies have lower percentage replacements because the purchaser did not want to pay the extra premiums.

They can but there is no requirement unless the employer has workers in states with mandates. Five states require coverage: California, Hawaii, New Jersey, New York, and Rhode Island.

In the remaining states the choice is up to the employer. It makes sense to offer a short term option as most group long term disability programs come with long waiting periods before benefits begin - most are six months or longer.

Many employees can't lose six months of income. The majority of American workers live check to check.

You proabably can't apply for benefits without a doctor. Your claims form needs to be completed by a certified medical professional in order to be paid a claim.

It depends upon how the premiums were paid. If premiums were paid using pre-tax or employer contributions, then the benefit is taxed in the same ratio. If premiums were paid using after tax dollars exclusively, then the claims payment is tax free.

You may be able to file a claim for any long term disability policy that you had in force prior to getting sick. Check to see what the elimination period is for the policy - if you have one.

The other option is to apply for Social Security Disability. Your condition must be expected to last for one year or result in death.

A guaranteed renewable disability insurance policy guarantees that you can renew it; in other words, in the event that you do become disabled, and you are collecting disability payments under your policy, they are not going to tell you that since you are disabled, you do not qualify to renew the policy (which, of course, would entirely defeat the purpose of having bought the insurance in the first place, which is to protect yourself from financial hardship in the event that you become disabled).