One of the most often asked questions in a disability claim is about the elimination time of your LTD coverage. An extended period during which you are incapacitated, unable to work, and hence unable to get benefits. A thorough understanding of the conditions that qualify for LTD in the United States and elimination periods and the solutions available might guarantee that you stay financially secure throughout this time.
What You Need to Know About Your Long-Term Disability (LTD) Insurance Elimination Period
An elimination period is a standard clause in most long-term disability insurance contracts. The length of time elapses between the moment you are legally declared handicapped and when LTD benefits begin to be paid. Based on the type of insurance you have, this period might range from 30 days to three months or more, depending on the circumstances. Generally, most insurance firms provide long elimination periods as an option. Employers often make use of this option to reduce policy rates.
Your first goal is to understand the elimination period under your employer’s long-term disability coverage.
In your policy documentation, it should be addressed within the first few pages, beneath the summary of the benefits section. If you do not already have a copy of your LTD insurance, you should get one from your employer as soon as you possibly can. According to the Employee Retirement Income Security Act of 1974 (ERISA), companies must distribute copies of all policy papers to their workers, free of charge and upon request, under certain circumstances.
Dealing with an Elimination Period: What Are Your Options?
The elimination period for LTD plans given by an employer is typically 90 days. Knowing how much time you will have to wait for LTD benefits will help you plan better for your situation in the future. You may wish to investigate purchasing supplemental LTD insurance on your own via a private provider. You may be able to receive your benefits sooner if you do so, but keep in mind that you will be required to pay a higher premium for the insurance as a result. Other possibilities for surviving a protracted LTD elimination period, according to US News & World Reports, include the following:
- Putting money down for a rainy day fund before becoming incapacitated;
- Increasing the efficiency of your budget;
- Ensuring one’s personal or real estate property against financial loss;
- Other family members might be enlisted for support.
- The process of withdrawing funds from retirement accounts
- Purchase and sale of stocks or other financial assets.
Unfortunately, not understanding your insurance policy’s terms and conditions might lead to unpleasant shocks and potential financial hardships for you and your family members.