Advantages of Procuring Private Disability Insurance
Disability can get in the way of ones daily living. To lessen the burden, people get insurance coverage to help them through the hard times.
With the present economic condition, getting private disability insurance and paying extra money on it tend to be an added burden on workers. Consequently, workers tend to be content with what their employers provide them.
For some workers who have public and private insurance coverage, they get not only Social Security Disability insurance and workers compensation but also private disability income claims.
Private Disability Insurance Claims
Aside from ERISA claims, long term disability insurance is offered in private policies purchased directly by individuals. Many choose private plans as they typically offer better benefits than an employer-sponsored plan. Some even supplement ERISA with private disability income plans so as to cover as many risks as possible.
In case of disability, the insured must prove the following to prevail in a disability income claim.
- Proof of disability
- Evidence that the disability prevents job performance
The key is to meet the disability requirement as defined in the policy.
Importance of Getting Private Disability Insurance
Private disability insurance finds its importance in long term disabilities.
In a 2002 study, the National Safety Council JHA U.S. Group Disability Rate and Risk Management Survey has documented that most long term disabilities are not covered by workers’ compensation.
Accordingly, the survey has shown the following findings:
- Injuries off-the-job – 6.6%
- Illnesses off-the-job – 89.5%
- Injuries on-the-job – 3.5%
- Illnesses off-the-job – 0.4%
In sum, only 3.9% of all illnesses and injuries causing long term disability occur in the workplace and therefore qualified for workers’ compensation disability benefits.
Conversely, a total of 96.1% of disabling illnesses and injuries are not work-related hence not entitled to benefits.
For other workers, they dismiss the idea of purchasing private disability insurance because of state disability programs. Well, this is true for states which have disability programs like California, Hawaii, New Jersey, New York, and Rhode Island.
However, these state programs are limited in the amount and length of benefit.
While public disability insurance and state disability programs sound promising, they are not adequate. The solution is to invest in private disability income insurance to be protected against unexpected and sudden loss of earning power due to a disabling injury or illness.
If you want to know more about private disability insurance, consulting a disability lawyer is advised. Any concern regarding insurance coverage is better dealt with through an insurance attorney.