Disability Insurance Benefits, News and Claims


Doctor and patient with 2 nurses

According to the American Council of Life Insurers one third of all Americans between the ages 35 and 65 will become disabled for more than 90 days and one in seven workers will be disabled for more than five years.

 

Disability insurance is sold by insurance companies as a product that can replace a portion of your income if you are unable to work due to an accident or illness.

The most common types of disability insurance policies sold are:

1) Short-term disability insurance

2) Long-term disability insurance

3) Business-Overhead expense insurance

4) Business Buyout Insurance

Disability Insurance is often confused with Social Security Disability Insurance (SSDI).

SSDI is a government benefit that a person may be eligible for if they worked long enough and paid social security taxes. In addition there are some states that provide short term disability benefits. Most individuals obtain a disability insurance policy through their employer, association, union, or from an insurance broker. There are more than 40 insurance companies that sell either short term or long term disability insurance.

GROUP V. INDIVIDUAL DISABILITY INSURANCE POLICY

If you purchased your short-term or long-term disability policy through your employer or received your long-term disability coverage as an employee benefit, then your disability policy is almost always subject to ERISA regulations. The Employee Retirement Income Security Act of 1974, also known as “ERISA”, is a federal law that sets the minimum standards for pension plans and disability insurance plans in the private industry. The principal purpose of ERISA was “to protect… the interests of participants in employee benefit plans… by establishing standards of conduct, responsibility, and obligation for fiduciaries of employee benefit plans, and by providing for appropriate remedies … and ready access to the Federal courts.” ERISA is a very complex statute which sets forth claim handling procedures that insurance companies must follow when administering a long-term disability claim. The ERISA claims procedures statute for the handling of ERISA disability claims is 29 CFR Section 2560.503-1. Some group disability policies are exempt from ERISA if you are a government employee, church employee, or you purchased your policy through a group or association which is not your employer. Most group disability plans will provide an individual with a monthly benefit equal to 66 2/3 of the insured’s pre disability occupation. The benefits will usually end at age 65 or SSDI age.

Individual disability insurance policies are purchased from an insurance broker. Indiviudal disability policies are exempt from ERISA. Individual disability policies are sold with specific monthly benefit amounts based upon the insured’s income at the time of applying for benefits. Individual disability policies can be sold with a benefit payment period from as little as 2 years to a max of lifetime. Most long term disability policies define disability as the inability to perform the duties of your occupation for 24 months, and then definition will change to the inability to perform the duties of any occupation for which you have experience, education or training. Individual disability policies are always more expensive than Group disability insurance policies as they usually offer better coverage and are not governed by ERISA. In general there are two main types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD).

In most developed countries disability insurance is provided by the national government. For example, the UK's version is part of the National Insurance; the U.S.'s version is Social Security (SS), specifically, several parts of SS including Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Government disability insurance is a safety net that catches everyone who was either (a) otherwise uninsured or (b) otherwise underinsured. As such, they are very large, very important programs, with many beneficiaries. The general theory of the benefit formula is that the benefit is not large but is enough to prevent abject poverty.

SOCIAL SECURIY DISABILITY

The US Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities. Both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program. Social Security Disability Insurance pays benefits to you and certain members of your family if you are "insured," meaning that you worked long enough and paid Social Security taxes. Supplemental Security Income pays benefits based on financial need.

Workers compensation

Workers compensation (also known by variations of that name, e.g., workman's comp, workmen's comp, worker's comp, compo) offers payments to employees who are (usually temporarily, rarely permanently) unable to work because of a job-related injury. However, workers' compensation is in fact more than just income insurance, because it may pay compensation for economic loss (past and future), reimbursement or payment of medical and like expenses (functioning in this case as a form of health insurance), general damages for pain and suffering, and benefits payable to the dependents of workers killed during employment (functioning in this case as a form of life insurance).

Veterans Benefits

The various kinds of compensation and insurance that are provided to military veterans by organizations such as the U.S. Department of Veterans Affairs (VA) are very much analogous to workers' compensation, with soldiers, sailors, and marines being the analogues of the worker. In both cases, the overall compensation system involves more than just one type of insurance, but rather encompasses health insurance, disability income insurance, life insurance, and even mortgage insurance on VA mortgages. The scope of each of these is limited. For example, the life insurance aspect is limited only to paying (rather small) survivors' benefits to survivors of veterans killed in the course of their service; it is not a general term life policy.

Insurance Articles

Pub. DateTopicAuthor
2011-12-02Employee Absence and Disability Productivity ManagementThe Standard
2011-11-24Disability Income Insurance - Important Tips from Dave JonesCalifornia Department of Insurance
2011-11-11Discretionary Clauses in Disability Insurance Policies Banned in CaliforniaDonahue & Horrow, LLP
2011-09-30Disability Insurance for Federal Government PhysiciansMR Insurance Consultants
2011-09-08FERS Disability Retirement Benefits for Government Physicians May Not Fully ProtectFinancial Balance Group
2011-08-09Suggestions and Advice When Shopping for InsuranceJulianne
2011-07-25How to Speed Up Your Disability ClaimColonial Life
2011-07-20Insurance Plans for Individuals with Challenging Health ConditionsUnited Security Assurance Company of Pennsylvania
2011-07-15Tax-Free Disability Insurance Benefit for PhysiciansCorporate Compensation Plans, Inc.
2011-06-30Buying Disability Insurance Later - The True CostMR Insurance Consultants
2011-06-24Insurance Agents Drop in Health Insurance Products CommissionsSummit Business Media
2011-06-21Disability Insurance Services - Join the DI RevolutionDisability Insurance Services Inc.
2011-06-15Buy deVere Group Healthcare OnlinedeVere Group
2011-06-13Short Term Disability Insurance for PregnancySupplemental Maternity Insurance
2011-06-12Raising Awareness of Social Security Disability InsuranceMarshall W. Conick, Attorney at Law
2011-06-09Drop in Number of Workers with Disability InsuranceThe Hartford
2011-06-09Basic Insurance is Not EnoughSimplistic Resolutions
2011-06-08Real Cost of Accidents and Illnesses - American Workers Not PreparedAflac
2011-06-06Active Purchaser Options for Health Insurance ExchangesThe National Academy of Social Insurance
2011-06-06Free Online Disability Insurance Quotes and Policy ComparisonsDisabled World
2011-06-03Health Management Services - Manulife FinancialManulife Financial
2011-06-02The Standard Now Provides Electronic Disability Policy DeliveryThe Standard
2011-05-27Educating Federal Employees About Disability InsuranceWright USA
2011-05-15Choosing Disability Representation ServicesMilam Law
2011-05-14Are You Uninsurable? Long-Term Care InsuranceJennifer St. James
2011-05-04Undervaluing Importance of Your PaycheckLIFE Foundation
2011-05-03Disability Income Insurance a Must for Singles Wanting to Protect Their IncomeMetLife
2011-05-02The Cost of Being HealthyAmerican Academy of Pediatrics
2011-05-02Disability Insurance Awareness Month - MayCIGNA
2011-04-29Concern for Medical Residents Buying Disability InsuranceMR Insurance Consultants
2011-04-29Importance of Group Disability Protection BenefitsLincoln Financial Group
2011-04-26Health Insurance for Children Under 19United Security Life and Health
2011-04-25Disability Insurance Coverage for Your PaycheckDisability Insurance
2011-04-25What Will You Say - Disability Insurance Services CampaignDisability Insurance Services Inc.
2011-04-12Private Disability Contractors Fabricating an Insurance CrisisFlorida's Children First
2011-04-11The Very Real Chances of Suffering Serious IllnessDrewberry Insurance
2011-04-07Income Armor Individual Disability Income InsuranceDisability Insurance Options
2011-03-27Dumbest Insurance Fraud CasesLife Quotes, Inc.
2011-03-07After Divorce - Insurance Information and FactsLaw Offices of Scott David Stewart
2011-03-04Disability Insurance Gaps and Opportunities in the WorkplaceMassMutual
2011-02-28Disability Insurance for Types of EmploymentSean Denny
2011-02-23Credits and Insured Status InformationDisability Group Inc.
2011-02-21Avoid Using Social Media Until Your Insurance Claim is ResolvedDoyle Raizner LLP
2011-02-17Critical Illness InsuranceColonial Life
2011-02-08Low-Cost Turnkey State Health Insurance Exchange Technology Solutions - MicrosoftMicrosoft Corp.
2011-02-04Close the Gender Gap in Heart Health and DisabilityAllsup
2011-02-01Over 50s Life Insurance EssentialRetirement Solutions Ltd
2011-02-01XLHealth Chronic Condition Special Needs PlanXLHealth Corporation
2011-01-31California Insurers Continue to Deny 26% of All ClaimsCalifornia Nurses Association/National Nurses United
2011-01-20MedAmerica and AIMS Launch FlexCareAIMS Benefit Solutions
2011-01-17Types of Disability InsuranceDisabled World
2011-01-13To Ensure Continued SSI Benefits Keep Your Address Up To DateShifrin Newman Smith Inc
2010-12-223 in 4 Campaign Addresses Boomer Long-Term Care Insurance3in4 Association
2010-12-13Buying Life Insurance with Serious Health ConditionLife Quotes, Inc.
2010-12-04Critical Illness Insurance Forecast to Be Growth Opportunity Next YearDisability Insurance Services, Inc.
2010-11-29Single Employees Less Likely to Have Life Disability CoverageColonial Life
2010-11-29ING Employee Benefits Expands Voluntary Employee Benefits EffortsING U.S.
2010-11-23Guide to Reducing Cost of Long-Term Care InsuranceLifeSecure Insurance Company
2010-11-02Domestic Medical Travel Spurs Insurers to Increase Offerings and Reduce Employers CostsHealth Options Worldwide (HOW)
2010-10-26Which Long-Term Care Policy Should I GetLTC Financial Partners LLC
2010-10-14COPD and Disability BenefitsAllsup
2010-10-12Children's Health Insurance CoverageUniversity of Minnesota
2010-10-10Insurance - Medical Temporary Health Insurance PlansInsurance Medical Temporary
2010-10-08How Will the Affordable Care Act Affect 15M. Uninsured Young AdultsCommonwealth Fund
2010-10-07Decision of Some Health Insurers to Drop Children's Coverage Statement by NPAFNational Patient Advocate Foundation
2010-10-03Children's Health Insurance - Parents PerspectivesAmerican Academy of Pediatrics
2010-10-03The SSDI Process Following Workplace InjuryRobbins & Associates, P.C.
2010-09-30New Health Insurance Exchanges Should be IndependentCommonwealth Fund
2010-09-29Patient’s Bill Of Rights Implements New Consumer ProtectionsCongressional Documents and Publications
2010-09-29US Senate Examines Concerns with Disability InsuranceDisability Insurance
2010-09-25Disability Insurance for Trades and Blue Collar WorkersMitch Reynolds
2010-09-24United States Senate Finance Committee to Investigate Long-Term Disability Insurance ClaimsDisability Attorneys Dell & Schaefer
2010-09-22Questionable Medical Claims Up 10 PercentNational Insurance Crime Bureau
2010-09-18Is Disability Insurance Worth It?ChristianPF.com
2010-09-15Do Insurance Companies Know Who the Good Doctors and Surgeons Are?American Academy of Orthopaedic Surgeons
2010-08-28Tips for Settling with an Insurance CompanyInjury Law Center - Law Offices of Jack Bloxham
2010-08-27Diabetes and Social Security Disability Insurance - You Might QualifyThe Law Offices of Goodson & Piemonte, P.C.
2010-08-22Choosing Between Disability Insurance and Critical Illness InsuranceLorne Marr
2010-08-20Critical Illness Insurance Cover for Peace Of MindMike Armstrong
2010-08-15Obama Administration Should Require Broad Financial Disclosures from Health Insurers to Scrutinize Unreasonable Rate HikesConsumer Watchdog
2010-08-07Getting Social Security Disability InsuranceRobbins & Associates
2010-08-03Anthem Life Insurance Integrated Approach in Colorado to Health and Disability Management with Productivity SolutionsAnthem Life Insurance Company
2010-08-03Disability Insurance: The Need Is NowAccuQuote
2010-08-02Will Insurance Companies Pass on the High Cost of ObesityObesity Disease Center
2010-07-19Fox Insurance Agrees to Pay Delinquent Medicare Part D ClaimsNational Community Pharmacists Association
2010-07-09Disability Insurance Free WebinarsDisability Insurance Services, Inc.
2010-07-04Enhanced Guardian Disability Insurance Coverage for Small Businesses in New YorkThe Guardian Life Insurance Company of America
2010-06-24Disability Income Insurance Broker SoftwareDisability Insurance Services, Inc.
2010-06-08Disability Insurance Services and Custom Benefit Plans Announce New RelationshipDisability Insurance Services, Inc
2010-05-27Remember Social Security Disability Insurance during Disability Insurance Awareness MonthAllsup
2010-05-25Early Stages of SSDI Claims ProcessJonathan Ginsberg
2010-05-25SSDI Hearings - Claimant CredibilityJonathan Ginsberg
2010-05-25Importance of Medical Records in SSDI ClaimsJonathan Ginsberg
2010-05-24SSDI Video Hearings CasesJonathan Ginsberg
2010-05-18Heart Disease and Social Security Disability BenefitsJonathan Ginsberg
2010-05-13Americans Not Protecting Themselves with Disability InsurancePrincipal Financial Group
2010-05-10Main Reasons SSDI Claims are DeniedJonathan Ginsberg
2010-05-06Awareness for Disability Planning and Prevention - UnitedHealthcare Specialty BenefitsThe Council for Disability Awareness
2010-04-29Less Than 50% of Americans out of Work Because of Disability Had Income ProtectionMetLife
2010-04-27Bad Faith Insurance Claims - TexasLaw Office of Julie Johnson
2010-04-17Unum Named Favorite Disability CarrierUnum
2010-04-13Heart Attack Patients Without Health Insurance Delay CareJAMA and Archives Journals
2010-04-02Fighting Unfair Disability Insurance DenialSokolove Law
2010-03-10Americans Hit Hard by Economy Risk Knockout Without Disability InsuranceQuoteRetriever.com
2010-02-15Health Insurance Websites Popular Among AmericanscomScore, Inc.
2010-02-03SCAN Health Plan for Seniors and Low Income ApplicantsDisabled World
2010-02-03SCAN Health Plan CaliforniaSCAN Health Plan
2010-01-18Insurance Shopping Steps: Education, Comparison and Purchasing2Insure4Less.com
2010-01-08How to File a SSDI ClaimAllsup
2010-01-07Guardianship Problems for Children with DisabilitiesMassMutual Financial Group
2010-01-06Timely Tips for Parents Expecting a BabyMassMutual
2009-11-17Disability Applicants Report Facing Foreclosure, Lost Health Insurance, Drained Retirement Savings and Worsening IllnessAllsup
2009-11-06Attorney Disability Insurance LLC Launches Website for Attorneys and Law StudentsAttorney Disability Insurance LLC
2009-11-05Call on States and Communities to Get Health Coverage to Uninsured ChildrenHHS Press Office
2009-10-28Breast Cancer and Critical Illness InsuranceFrank N. Darras
2009-10-06Health Insurance Reform Essential for Women - PelosiOffice of the Speaker of the House
2009-10-05Disability Insurance Website - KF Financial, Inc.KF Financial
2009-09-09Role of Social Security Disability Insurance for Obtaining Medicare BenefitsAllsup
2009-08-11Denying Insurance Coverage and Discriminating Against Pre-Existing Medical ConditionsHHS Press Office
2009-07-21Individual Health Insurance Market Failing ConsumersCommonwealth Fund
2009-06-02Out of pocket Healthcare Costs Rise for Workers with Employer CoverageCommonwealth Fund
2009-05-05Disability Insurance Payments for Accident and IllnessTristan Andrews
2009-05-04Critical Illness Insurance During National Stroke Awareness MonthThe Guardian Life Insurance Company of America
2009-05-04Protecting Your Biggest Asset - Your IncomePR
2009-05-02Ways to Protect Your Paycheck from Disabling Illness or InjuryGuardian Life Insurance Company
2009-05-01Americans Taking Serious Risks Without Disability InsuranceLIFE
2009-04-25Insurance Coverage Affects Access to Quality Cancer CareFox Chase Cancer Center
2009-04-16Canadians not Confident They Have Enough Insurance CoverageManulife Financial
2009-04-08Long Term Disability Family Care Reimbursement BenefitLincoln Financial Group
2009-04-02Assistance Living with a Disability and Seeking Financial SupportSSC Disability
2009-03-23AARP Health Insurance and MedicareAARP
2009-03-21Health Insurance COBRA OBRA HIPAA Medicare DefinitionsCarolyn Magura
2009-03-18Health Insurance in the UKGareth Owen
2009-03-18Information on Shopping for Health InsuranceGareth Owen
2009-03-18UK Health Insurance TipsGareth Owen
2009-03-14Why Disability Insurance is ImportantCarolyn Magura
2009-03-12Disability Insurance Explained - USACarolyn Magura
2009-03-11Hartford Disability Claims Service Helps Workers Back to Work FasterThe Hartford Financial Services Group, Inc.
2009-02-24Health Insurance Essential for Health and Well-beingNational Academy of Sciences
2009-02-05Health Insurance Options for the Self EmployedDisabled World
2009-01-23Only One in Ten Unemployed Workers Obtain COBRA CoverageCommonwealth Fund
2009-01-02Taking Responsibility for Your Own HealthKevin Gianni
2008-12-31Choosing Health Care Group Plans vs Individual Insurance PlansLaura Caldwell
2008-12-30Holidaymakers with Disabilities Should Check Travel InsuranceSofia Abasolo
2008-12-29Benefits of Travel InsuranceGreath Owen
2008-12-21Benefits of Disability InsuranceBernard B.
2008-12-21Disability Insurance FactsJo Thomas
2008-12-17Group Disability Supplemental Insurance PlansJohn Massa
2008-12-17Pregnancy Disability InsuranceJohn Massa
2008-03-18Social Security Disability Benefits Essential for Sound Financial PlanningAllsup

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