Following a non-work-related injury, some might be worried about the cost of sustaining their livelihood. Here’s how long-term disability insurance works in California.
Long-term disability insurance can provide financial relief to individuals who are significantly impaired following an injury, whether or not the injury was work-related. Therefore, understanding how it works can be crucial to reaping its benefits.
What is Long-Term Disability Insurance?
Long-term disability insurance is insurance provided through wage replacement following a non-work-related injury that significantly impairs an individual’s ability to work. It is available for some individuals directly through their employer, while others may have to purchase it individually. It is not a benefit received through the state of California.
Long-term disability insurance typically comes into play once benefits from short-term disability insurance or from the state have run out.
Related: Short-Term vs Long-Term Disability Insurance in California
What is Considered “Disabled” for Long-Term Disability Insurance?
Generally, two definitions of “disabled” are used in consideration for long-term disability insurance.
To be considered Own Occupation (Own Occ) disabled, an individual must be unable to perform the job they currently hold. This usually results in benefits lasting between two to five years.
To be considered Any Occupation (Any Occ) disabled, an individual must be unable to perform any job. This usually results in benefits until they are able to perform a job again or until their policy expires.
How to Get Long-Term Disability Insurance
If applying for long-term disability insurance through an employer, one should contact their employer’s HR office. There may be different requirements regarding an individual’s time with the company before applying for long-term disability insurance. If applying individually, contact an insurance agent.
Long-term disability insurance providers, both providing individual coverage and group coverage through an employer, take the applicant’s medical history into account. If an individual with a medical condition that puts them at risk for a disability in the future and was treated recently for that condition applies for individual coverage, there is a chance that they may be denied coverage. If an individual was treated for a pre-existing medical condition within the past three to six months applies for group coverage, they will most likely still be provided coverage, but there may be a set period of time immediately after getting coverage in which they will not be covered, known as the pre-existing condition exclusionary period.
Receiving Long-Term Disability Insurance
Most long-term disability insurance plans have a service wait, or a period of time before coverage begins. After this period is over, the individual is covered and is eligible for benefits. After applying for a benefit, there is usually a waiting period, which is generally between 30 to 180 days.
The amount of money received through benefits differs depending on each individual’s plan. For some plans, this amount may be a set monetary value, while for others, it could be a percentage.
FAQs
How long does long-term disability insurance last?
Long-term disability insurance typically lasts for at least one year. Contrarily, short-term disability insurance lasts up to one year.
What’s the difference between long-term disability insurance and worker’s compensation?
While both programs provide wage replacement following an injury that significantly impairs an individual’s ability to work, long-term disability insurance covers all injuries and illnesses, regardless of how it was caused, while worker’s compensation only applies to damages caused by work-related injuries and illness.
Related: California Workers’ Compensation Laws
Is long-term DI offered through the state?
No, long-term disability insurance is neither a state program nor offered by the government. Long-term disability insurance is offered solely through your employer or through a separate private company. However, California does offer short-term disability insurance, as well as paid family leave benefits through the state Employment Development Department.
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If you have any more questions about how long-term disability insurance works in California, contact us. We’ll get you in touch with the most qualified attorneys for your unique legal matter. Get your free consultation with one of our California Disability Insurance Attorneys today!