Atlanta Disability Insurance
Every year, millions of Americans suffer from serious injuries and illnesses. Often with little or no warning. Most workers have some form of health coverage or health insurance to absorb costs related to catastrophic medical events or ongoing treatments for chronic illnesses, such as diabetes and cancer. However, far more lack Atlanta disability insurance coverage that compensates a policyholder for income lost when they can’t perform some or all of their duties/jobs due to a qualifying health condition or medical event.
According to the Bureau of Labor Statistics, only 39% of American workers had short-term disability insurance, and 33% had long-term disability insurance in 2014.
A serious medical issue can render you unable to work
A serious medical issue can render you unable to work for weeks, months, or even years and in the relatively unlikely event that you experience it, Atlanta disability insurance can serve as a vital financial backstop to maintain your living standard and reduce the financial strain/burden on your loved ones.
Disability coverage carries an ongoing cost likes all other forms of insurance. However, for employer-sponsored plans, some workers may pay little to nothing out of their pockets.
What Is Disability Insurance?
Disability insurance (also known as income protection insurance) comes in two forms: short-term disability insurance and long-term disability insurance. While policy terms and coverage vary depending on the issuer, here’s a general overview of the essential distinctions between the two.
Short-Term Disability Insurance
Workers temporarily unable to perform their job duties due to qualifying disabilities can count on short-term disability (STD) policies for their income protection.
Every short-term disability claim is subject to a short elimination or waiting, a period that usually lasts a week or two, during which period a policyholder doesn’t receive benefits. After the elimination period, a consecutive period of disability, usually lasting no more than 26 weeks, follows, and this is when the policyholder receives benefits.
The policy and occupation determine the benefits that a policyholder will receive, but generally, it ranges between 50% and 70% of pre-disability income. For income loss related to on-the-job injuries, short-term disability policies may not cover it.
Long-Term Disability Insurance
Workers who are unable to perform their job duties over a longer period can count on longer-term disability (LTD) policies for their income protection.
LTD claims are subject to elimination periods, just like short-term disability claims. The elimination periods for LTD are longer than the ones for STD. Typically, they range between one month and six months, but sometimes as long as 12 to 24 months.
An accumulation period of each LTD policy
An accumulation period of each LTD policy also stretches twice the length of the elimination period. The cumulative disability time that a policyholder accrues during the accumulation period must be sufficient to exceed the elimination period. Once the elimination threshold is met, a policyholder need not be continuously disabled during the accumulation period.
Provided the elimination period is met, benefits are payable either for the duration of the policy or until a policyholder is no longer considered disabled.
Qualifying for Disability Insurance Coverage
Disability insurers consider three key things during their thorough underwriting process: your health, occupation, and income, and financial status.
The medical underwriting process is very rigorous, given the high cost of replacing most of the income of a policyholder for months or years. Usually, it comes in three parts:
- Health Survey – An oral or written questionnaire covers topics such as your health history, family history, lifestyle, and habits.
- Medical Exam or Panels – For most policies, you must undergo a physical examination. Some require blood or urine tests to screen for drug usage and common chronic conditions, such as diabetes, kidney failure, and cardiovascular issues. Other group policies don’t require medical tests or examinations.
- Medical Records – Before application, some insurers will ask you to provide your medical records for a period of five or ten years. It often takes weeks to get the necessary information, thus lengthening the underwriting process.
2.Income & Financials
Financial underwriting generally requires you to provide documented proof of your income, including:
- Previous year’s tax returns
- Bank account statements
- W-2 and 1099 statements
- Profit-loss statements, if available
Finally, insurers consider your occupational class as a critical determinant of risk. They classify occupations deemed more hazardous, such as certain outdoor or manufacturing jobs, as higher risks than white-collar occupations that are considered to be less dangerous.
Atlanta Disability Insurance
If you want to know more about Atlanta disability insurance, contact Bobe & Snell Law Office LLC today to consult our experienced and helpful workers’ comp attorneys. Call us today at 470.268.5802 or fill out our online contact form to schedule a free consultation.