Quick Tips Regarding Disability Insurance
Disability insurance is designed to help those individuals who are suffering from a temporary or permanent disability. Whether dealing with injuries from a recent accident or a chronic illness, disabilities can take over the life of an individual. In addition to the physical pain involved, this reality can also cause problems in other areas of an individual's life. Medical bills for treating disabilities can be very expensive, and working is sometimes difficult or impossible in these situations. Fortunately, there are disability insurances that are designed to help these people.
Understanding the ERISA law.
In 1974, ERISA (Employee Retirement Income Security Act) became law. While this bill primarily focused on pensions in the private sector, there were specific laws regarding long and short-term disability insurance. The short-term insurance is designed to cover injured individuals by paying a portion of their income for 9 to 52 weeks. The long-term insurance is specified to cover more extreme cases that last over 52 weeks and potentially until retirement age. While the ERISA may appear to benefit the disabled, there are several flaws in the system. Many of the claims end up getting denied repeatedly because the companies don't have an economic incentive to grant the aid. Although there is a legal appeal process, the time and monetary investments are usually not worth the struggle.
Finding protection in other areas.
Fortunately, ERISA isn't the only option for disabled workers. It is advisable for employees to purchase a private and individual disability insurance policy. These policies are subject to state law, while group disability policies filed under ERISA are subject to the whims of corporations. This interesting fact means that workers will be able to file a claim with the state courts for denied claims. There is no need to deal with filing an appeal to the insurance company.
Consider taking short-term disability.
Most people feel the need to continue working through their pain until it is unbearable which leads many employees to skip short-term disability options altogether and jump right into the long-term policy. Although many chronic illnesses are difficult to diagnose, it could be a good idea to take short-term disability because it is more beneficial from an economic perspective as workers have the time to improve their symptoms possibly. Taking this short-term disability may even give individuals the chance to solve their pain and skip out on long-term disability altogether.
Think twice about taking part-time opportunities.
Many disabled workers will consider taking a part-time position at their company. While this sounds like a good idea to maintain a stream of income, there could be negative consequences. Many employers don't have to offer any insurance benefits for part-time workers. If an injury or illness worsens and forces a worker to quit their part-time job, disability insurance may no longer be available. In some cases, it may be more beneficial to go straight from full-time work into disability.
Disability insurance is a complicated system that needs to be dealt with carefully. Nobody wants to suffer from their lack of insurance in addition to their injury or illness. There are many disability insurance quotes online that can be found with a quick search.