Employer-provided benefits make up a significant portion of your overall compensation package. In addition to health care, retirement accounts, and life insurance, long term disability (LTD) benefits should also be included. Unfortunately, the total amount of coverage your employer offers may not be adequate to protect you in the event you suffer an injury or illness that prevents you from working. In some cases, it makes sense to pay out of pocket for additional long term disability coverage. The following details whether this might be the best option for you.
Long term disabilities can happen to anyone and at any age. According to statistics from the Social Security Administration (SSA), roughly 25% of all 20 years olds today will eventually suffer a long term disability prior to reaching retirement age. Long term disability benefits provided by your employer can offer a safety net in this situation. Policies typically provide up to 60% or more of your income while you are unable to work, helping to ensure monthly bills and daily living expenses are paid.
However, simply having this type of coverage in place does not ensure you are adequately protected. Private LTD policies are available to help supplement the current coverage you have. Situations in which you may want to consider investing in this type of insurance include:
To determine whether you need additional long term disability insurance, you need to realistically assess your risks. You also need to be aware of what your current coverage offers. Social Security does provide disability benefits based on your income and the amount of time you were employed. Check this amount along with the benefits you are entitled to through your employer.
Under the Employee Retirement Income Security Act of 1974, your employer must provide free copies of all policy-related documents at your request. Review these documents carefully, paying close attention to the terms. You will want to note when the policy goes into effect, the amount it pays, the duration of coverage, and any exclusions you may fall under. This information can help guide you in whether additional coverage is needed.
The Law Offices of Michael Bartolic is dedicated to ensuring you and your family are protected in the event of long term disabilities. For help in your case, call or contact our Chicago long term disability lawyer online and request a consultation today.
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