In this Video Marc Whitehead, a Board Certified Disability Attorney, discuses how you can use a “Salary Percentage Requirement” to win your Case.
Some Policies in a Long Term Disability Insurance Policy can actually favor the claimant. Some Policies have a Salary Percentage Requirement included in the “Any Occupation” definition of disability. The prevision in the Policy is the requirement that your insurance company can’t just say that your qualify for any job, at any wage and deny you disability benefits based off that.
In most cases the percentage has to be 60- 80% or more of your income that you were earning in your previous position.
Example: A registered nurse was making $70,000 a year and started suffering from a disability that prevented her from continuing in the position. The insurance company would not be able to take her lower level office administration skills and say that she doesn’t deserve benefits because she has the ability to get a receptionists position for $24,000 a year. Because that would be way less then 60-80% of her former salary.
Of course, it is not always that straight forward.
How does a Salary Percentage Requirement work?
The first thing you need to know is the Salary Percentage Requirement doesn’t come into play until after you receive disability for 24 months under the “Own Occupation” prevision of your policy. It is only after you have to qualify for the “Any Occupation” requirement that this becomes an issue. So this is something you wont have to worry about right up front.
That being said, it is important to talk to your lawyer about this requirement, because some time the insurers will attempt to bend the law and argue that the 80% should be based off of your last several years of employment rather then just what you made at your last job. If you recently received a raise or promotion this can be a big blow to your claim.
The other thing to note is how far the 80% actually goes. If you are working at a high level executive position working for $1 Million a year or more the 80% Rule may not apply.
How do you know?
By talking with an experienced disability attorney about the specifics of your case under ERISA law.
Marc Whitehead & Associates has over 20 years of experience in ERISA Disability Law and litigation.
