What You Should Know About Disability Insurance

Disability insurance policies provide protection in the form of disability payments to individuals who can no longer work due to their health. There are two types of disability insurance policies: "own occupation policies" and "any occupation" policies. "Own occupation" policies protect individuals who are unable to perform the substantial and major duties of their specific job. In contrast, an "any occupation" policy provides disability payments only if an individual is incapable of performing work of any kind. Given the greater protection provided by "own occupation" policies, these policies are preferable to an "any occupation" policy.

Many workers obtain some form of disability insurance through a group policy at work, or by purchasing an individual policy through an insurer apart from work. Most disability policies, regardless of the type, provide an employee with between sixty and eighty percent of their monthly base salaries prior to their total disability.

When a total disability arises, a claim should be promptly submitted to the insurer for benefits under the policy. The insurer may often require medical certification forms to be completed by doctors; forms from employers concerning the insured's ability to work; and other data regarding daily or work activities from the insured.

During the claim process, disputes can arise with insurers. Typical disputes include the timeliness of disability applications; questions regarding whether an insured is totally disabled; and questions about the onset date of a total disability. If such disputes are not resolved through internal appeal processes with the insurer or benefits administrator, the claimant may seek review of a denial of benefits.

If you would like more information about disability matters or other subjects, please contact us through this site's e-mail or by calling (612) 339-4295.

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