Outstanding numbers say that at least one out of every four workers will become disabled at some point during their working career! So, how does disability insurance come into play to help out the worker in need? Disability Insurance pays some or all of a worker’s salary if that worker becomes disabled or is unable to work at his or her job. Disabilities sustained in the workplace typically include accidents, injuries, cancer, or even heart attacks.
What Types of Disability Insurance Are There?
There are two types of insurance, known as short-term disability insurance and long-term disability insurance. Private disability insurance policies will usually come in one of these two packages. But what is the difference?
- Short-term disability insurance: This type of insurance will usually cover disabling illnesses for up to six months.
- Long-term disability insurance: This type of insurance could cover much of a worker’s salary for an entire lifetime, if found necessary.
However, with many insurance companies, the benefits don’t end there. Many will also offer additional protections and options, such as cost-of-living adjustments, guaranteed renewal, and refunding of some premium payments if the worker does not become disabled within a specified time.
How much will disability insurance cost?
There are plenty of factors that come into play when figuring out the cost of disability insurance. This includes the worker’s occupation, the worker’s health, the worker’s lifestyle habits, the amount of monthly benefits the worker intends to receive, and the disability insurance policy’s options. When you compare this to other types of insurance like life insurance or auto insurance, disability insurance can be quite expensive. Some will estimate it for several thousand dollars per year, in fact. People with higher risks of injury or health conditions will probably expect to pay more. However, depending on the circumstances of the individual, the cost of disability insurance can outweigh the risk of losing one’s home or not being able to provide for one’s family in the event of a long-term disability taking place.
What legal issues might I expect?
As with any contract in place, legal issues can always arrive when dealing with disability insurance. Some policy holders may find themselves in a position where they submit a claim after becoming disabled and end up being denied because their insurance policies actually don’t cover certain injuries. In other cases, the insurance company may disagree with the doctor’s findings that the policy holder is actually disabled. Disability insurance policies can be heavily regulated by complicated rules and procedures. If these rules are not followed, somebody may end up being denied. This is why it is a good idea to have a lawyer on your side through the process.
The Laws Specifically in New Jersey
In many states today, employers are not legally required to provide disability insurance to workers. However, in some states, including New Jersey, employees are required to be covered by short-term disability insurance through state-run programs or by equivalent private or self-insurance coverage. It is important to remember, however, that these state programs only provide minimal benefit levels and do not provide long-term coverage by any means.
If you or a loved one have been injured and have any questions concerning disability insurance, you may want to take to a lawyer that you trust. You may end up running into legal issues that require the experience of an attorney and not receiving the help you need could keep you from the compensation you deserve. Call MDL today for a free consultation to go over your case!