Why Do Long Term Disability Carriers Require You to Apply for Social Security Disability Benefits?

If you have a long term disability policy, look closely at the policy to see whether there is a provision that requires you to apply for Social Security Disability benefits. Disability insurance is intended to replace part of your income and it is not intended that you will receive 100% of your pre-disability income from all sources including Social Security Disability.

One of the reasons that all long term disability policies require an off set for Social Security Disability benefits, is to prevent you from getting 100% or more of your pre-disability earnings. However, the real reason is that the Social Security Disability offset allows employers and employees to purchase affordable group long term disability benefits. According to the American Council Life Insurers, estimates show that without offsets the premiums for group disability insurance would be increased by at least 40% and even up to 100%.

Need More Help With Your Long Term Disability Benefits?

Quite frankly, long term disability attorney Nancy Cavey rather not see a Social Security Disability offset in any policy, even if it means increased premiums. Would that mean that fewer people would have group insurance benefits? Probably, but once a long term disability applicant understood the impact of the Social Security Disability offset, they would understand that why it is wiser to pay an increased premium than to have a reduction in the Social Security Disability benefits. Unfortunately, Social Security Disability offsets will rob many policy holders of their peace of mind who that they purchased a long term disability policy to provide them with income replacement. The reality is that it is only a replacement ratio of pre-disability income and Social Security will contribute to satisfy that replacement ratio.

If you don’t Understand the Difference Between Short Term and Long Term Policy, You’ll Hate Yourself Later When You Are Unable to Work

Your employer may offer you both a short term and long term disability policy, what are they? What should you choose?Short and Long Term Disability

Short term disability policy normally pay 70-80% of your income for periods generally up to 6 months.

Long Term Disability policies will pay you 40-60% of your income and potentially can pay you benefits up to retirement so long as you meet the definition of disability.

Did you know that over 50% of all mortgage foreclosures and 20% of all personal bankruptcy in 2001 were caused by disability? You need to protect your income and your family’s well being.

If you have a choice, Pinellas and Hillsborough County certain long term disability attorney Nancy Cavey suggests that you get both short and long term disability coverage to protect your income.

If you have questions about which policy is right for you, you can order Nancy Cavey’s free no obligation book, Robbed of Your Peace of Mind. In this book it explains everything you need to know about your short term or long term disability claim.  If you have other questions, call us today at 727-894-3188.

How Long Will I Have to Wait Before I Get My Long Term Disability Benefits?

Long Term Disability policy premiums depend on your age, gender, health history and your occupation.How Long for a Long Term Disability Claim?

An important factor is the policy elimination period. This is the length of time you go without getting benefits. Sometimes people choosing a ninety-day period of time to go without benefits at the onset of their disability. When the time is up, the Long Term Disability carrier will start paying your benefits. The longer your elimination period, the cheaper your premium. I’ve seen elimination periods as long as a year and I would not encourage that.

I would suggest a ninety-day elimination period.

You also get to choose how long you will get paid benefits. Most companies will let you chose benefits that last between two, five years to age 65, 67 or for the rest of your life. Quite frankly, it’s very difficult to find a policy these days that will pay a medical professional for the rest of their life and more commonly these disability policies will pay through the age 62 or 65.

Regardless of the price tag, remember you are insuring you and your ability to work. As the breadwinner you have the obligation to yourself and your family to provide them with support even in a time of your disability. If you have any questions about the Long Term Disability process, contact us today so we can get you on the right track in your claim. 727-894-3188.

Give me Five Minutes and I’ll Tell You Why You Should Not Allow Crowe Paradis to Handle Your Long Term Disability Claim

Give me 5 Minutes!Many long term disability policies require that you apply for Social Security Disability benefits. They’ll even make recommendations for Social Security Disability representation. Hartford, for example, will refer you to a company Crowe Paradis for Social Security representation.

You may even get a letter from Crowe-Paradis making it clear that they are not affiliated with Hartford. But they will request what’s called a limited power of attorney that will allow Crowe-Paradis to transfer any past due Social Security Disability benefits you get to Hartford.

You need protect yourself by avoid using companies such as Crowe Paradis or even Allsup that are recommended by long term disability carriers. Why? Often they will try to win your Social Security disability case by arguing you have a psychiatric disability while your long term disability policy LIMITS your LTD benefits for 2 years if you are disabled because of psychiatric problems.  It is in your best interest to secure the services of your private Social Security Disability attorney. You should pick an attorney, who preferably, has experience in handling long term disability benefits and Social Security disability, so that you don’t lose valuable benefits by having the wrong medical condition be the basis of your SSDI claim.  Don’t let companies like Hartford, Crowe Paradis or Allsup compromise your benefits. Contact ERISA | Social Security Disability attorney Nancy Cavey at 727-894-3188

Am I Entitled to Interest on my Reinstated Long Term Disability Benefits?

Reinstated Long Term Disability Benefits

If you live in the 11th United States Circuit of Appeals, which covers Florida, Georgia, and Alabama the answer, unfortunately depends. In Willy Arthman v. ABB, Inc., the panel of the 11th United States Circuit of Appeals judges found that absent a specific provision in your Long Term Disability contract entitling you to interest, ERISA doesn’t allow you to sue of for interest on past years ERISA plan benefits.

Therefore, and unfortunately, the Long Term Disability carrier can deny your benefits, hold on to the money, earn interest, and then when they decide to reinstate your benefits, only pay you what they owe without interest. This is just another reason why the ERISA law defies Long Term Disability policyholders of their peace of mind. Nancy Cavey, Orlando, Fort Myers, Miami Long Term Disability attorney has written a free consumer guide “Robbed of Your Peace of Mind,” that talks about the policy terms that you don’t want to see in your Long Term Disability policy. For a free copy, click the above link or fill out the form to the right of this page and we will rush you your consumer guide right away.

Can I Get Both Workers’ Compensation and Short and Long Term Disability Benefits?

Well, the real answer is that it depends! Many Short and Long Term Disability policies can provide for both the receipt of both Workers’ Compensation and disability benefits. Others will take a complete reduction of benefits, while others will pay a monthly minimum. How does this work?

To figure the amount of your monthly benefits for Long Term Disability benefits Nancy Cavey, Florida Long Term Disability and Workers Compensation attorney does theCan I have both Workers Comp and Disability Claims? following:

1. Multiply your Long Term Disability basic monthly earnings by the benefit percentage shown in the policy.

2. Take the lesser of the amount: a) determined in step one, b) maximum monthly benefit shown in your policy.

3. Deduct any income benefits, which can include Workers Compensation benefits.

That’s confusing isn’t it?

Real numbers always help:

A $3,000 monthly wage, Long Term Disability benefits 60% or $1,800 per month, Workers Compensation benefits are $1,000 per month, Social Security benefits are $1,000 per month.

After your offset, you would be entitled to a minimum monthly payment which can be anywhere from $50 to $100 per month.

Is that worth pursuing? Yes! Because you potentially are entitled to Long Term Disability benefits.

It is important that you read your Short and Long Term Disability benefits and consult with a lawyer, such as Nancy Cavey, who handles Short and Long Term Disability, Workers Compensation and Social Security Disability claims. She can help you integrate all of these benefits and help you through the minefield of Workers Compensation, Short and Long Term Disability and Social Security Disability benefits.

What is the Present Value of My Long Term Disability Benefits?

I explain present value in several different ways. It can be considered that money today is worth more than the money we get tomorrow. In other words, if you get $10 today and invest it at a percentage for twenty years, it may yield $15.00, if you get $10 in fifteen years it’s still $10.00.

Would you prefer $10 today or $10 in fifteen years?

In evaluating Long Term Disability claims we will look at the total amount of benefits due over the life of the policy and then reduce it to present value. In other words, what is yourLong Term Disability Benefits Value policy worth today as opposed to over the life of your plan?

Another way to look at it is if you have won the $20 million jackpot and you want it now, you’d only get $6 million or you can get the entire $20 million by waiting and getting it over time. Present value is what that $20 million jackpot is worth today.

If you have questions about the value of your Long Term Disability case, contact ERISA disability attorney, Nancy Cavey, who handles ERISA Long Term Disability claims in the Southeastern United States including Florida, Georgia and Alabama.

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