Long Term Disability (LTD) typically lasts a set term of either two, five, or ten years, depending on the policy. In some cases, LTD can last until you reach Social Security retirement age.
If you plan to claim LTD, it is important that you understand how long you’ll receive payments so you can budget appropriately. You can discuss your case with a Long Term Disability lawyer for more guidance.
How Does Long Term Disability Work?
LTD is a type of insurance meant to replace your income if you become disabled and can no longer work. Unlike Short Term Disability (STD), which typically lasts three to six months, LTD is usually reserved for cases where you expect to be disabled for a year or longer.
To receive LTD, you must prove that you have a disability due to a qualifying condition covered under the policy. Qualifying conditions depend on the specific policy but usually include common types of long term ailments, like:
- Traumatic injuries
- Musculoskeletal disorders
- Cardiovascular diseases
- Neurological disorders
- Cancer and disease
- Chronic illnesses
- Mental health disorders
When making an LTD claim, you must have an official diagnosis and medical documentation showing your inability to work. Each policy has a specific definition of disability that you must meet to qualify for benefits. The definition has to do with your capacity to perform core work functions to an adequate level.
Note that LTD insurance is primarily used for non-work injuries. If you get hurt while working at your job, you would instead be eligible for workers’ compensation. The vast majority of employers are required to carry workers’ compensation for injured employees.
For a free legal consultation, call (800) 562-9830
Timeframe for Long Term Disability Payments
The exact length of time you will continue receiving payments depends on the specific policy. Most LTD policies set a fixed timeframe for receiving LTD benefits. This could be two, five, or even 10 years. Most policies have a maximum limit to how long they will provide benefits, regardless of whether you’re still disabled.
For example, many policies won’t pay out once you reach Social Security retirement age (65). The logic is that you can start receiving Social Security Disability benefits at that age and will no longer need LTD benefits. Although rare, some policies will continue to provide lifetime benefits.
Different policies may have different payment timeframes for different types of Long Term Disability. For example, some LTD policies only allow up to 24 months for mental health disabilities and have longer timeframes for other disabilities.
Many policies also have a waiting period that must pass before you can make a claim. This waiting period is to prevent you from using the policy as soon as it becomes active. You may also have to exhaust all of your PTO and sick time before you can start collecting benefits.
Can I Extend Long Term Disability?
Whether or not you can extend your LTD benefits again depends on the specific policy. Some insurers will allow you to extend disability benefits past the original term if you show proof of a continued or worsened disability.
You may also have to show that your condition has worsened and that you can no longer perform any work, not just your previous job.
The process for extending disability coverage may be complex, so you should consult with an attorney. They can identify how long LTD lasts and determine whether there is a process for lengthening the period of your benefits.
How Much Does Long Term Disability Pay?
LTD generally replaces between 50% and 80% of your income, with most policies falling between 60% and 70%. The amount of benefits you receive depends on your average weekly earnings. Insurance companies will consider the previous 12 to 24 months of your income and divide it by the number of weeks to derive an average figure.
The policy will also have a maximum weekly benefit. This is the maximum amount the policy will pay out per week, regardless of your average weekly earnings.
Here’s an example to see how this works: Say your policy covers 60% of your average weekly earnings up to a maximum of $800 weekly. If your average weekly earnings are $1,000, you would receive $600 a week. If your weekly average earnings are $1,500, you would receive only $800, as 60% ($900) exceeds the maximum weekly benefit.
Contact a Long Term Disability Lawyer
Applying for LTD or appealing a disability denial is a difficult process, and it’s easy to make mistakes that could harm your case. For the best results, you need an attorney with a thorough grasp of disability and insurance law.
A lawyer can help you gather the correct documentation and gather additional information as requested. A lawyer can also help recover payments if you feel that your insurance company has wrongfully terminated your benefits early.
Do you have more questions about how long Long Term Disability lasts? If so, contact Marc Whitehead & Associates today to schedule a consultation with a disability insurance lawyer.
Call or text (800) 562-9830 or complete a Free Case Evaluation form
