Long Term Disability in Canada FAQs Debunked
Long-term disability is an option for some people. However, do you really know what it is?
When many people think of long-term disability insurance, they often think of this as a supplementary type of insurance that they do not need.
While we hope that this is something that a person never has to use, the reality is that many people end up needing to use LTD through no fault of their own.
Myth 1: Long-Term Disability is NOT Needed
This is one of the biggest myths that people are believing! Why? They often think that they have other coverages that are meant to cover them. Thus, why would they need long term disability?.
This is not the case, as this is different from worker’s comp and it is different from social security disability insurance.
Also, the disability coverage that your employer provides is not going to be good enough. Consider these facts:
- Workers comp is only meant to cover you if you are hurt on the job. Did you know that only around 5% of the accidents or illnesses that a person suffers is from a workplace incident? The chances of you being able to use workers comp is very slim.
- Social Security Disability Insurance is a government program that is meant for those who are under the age of 65 and who have become disabled. It does sound perfect. However, getting qualified for this program is hard, and many people who bank on this being an option may find themselves in financial trouble.
- In most cases, an employer disability coverage plan is only going to give you 40% of what your income is. Is this going to be enough for you to survive in the event that you do become disabled? Probably not!
A big issue to remember, you should never think that you will not be one of those who becomes disabled! Thinking this way can cost you in the long run.
Remember, for those people who are in their 20’s, about 1 in 4 will become disabled before they are at the age to retire.
Myth 2: Government Employees do not Need to Worry about Long-term Disability Insurance
This is a common myth that has cost many government employees their livelihood. Why is this believed?
It is because government employees are eligible for plants like the Federal Employees Retirement System. And this type of program can help a person if they are disabled.
However, there are very strict requirements that must be met in order to do this. Those who are government employees are going to find that it is worthwhile for them to have a supplementary long-term disability plan in place. This can help in the event that they do become disabled.
Myth 3: You Will Never Get Paid Anyways
Let’s face it, insurance companies do not have a great reputation at all.
Many people are bullied by insurance companies to take less money than what they were originally promised, or they find that they do not get any payment at all.
- Many people find that getting disability insurance for issues like bipolar disorder or depression. This turns many people away from having this type of insurance.
- Many people have long-term disability plans find that they will only pay if you can’t work anywhere, not just in your specific field. This is called an Own-Occupation Policy. If a person becomes ill or is injured and they can work on anything else, then the insurance company is not going to pay out. Be sure that you are reading the fine print on the policy that you purchase.
- Negative reviews online have also made it harder for people to believe in the positive of having long-term disability insurance. Remember, while you may see tons of bad reviews, often people are quick to take to the Internet when they have a bad experience and are less likely to do this when they have a good experience.
If you do have a policy and become disabled then you’re in good hands. If your policy is meant to cover any type of incident that has caused this disability, you are entitled to this payment.
Myth 4: You Must Have Long-term Disability Insurance Until you Retire
While we talk about how important this long-term disability insurance is, this does not mean that you have to have this policy until you retire. In fact, it may be best not to have this until retirement.
If a person were to have LTD covering them until they retire, they often find that they pay tons more than what they really needed it to. Most professionals recommend that you have a five-year policy.
This means that the policy will pay you for five years after the policy is claimed when you are disabled.
In most cases, a disability is only going to last for three years, hence why having a policy that lasts until you retire can be a waste of money.
The Value of Long-Term Disability Insurance
Hopefully, through understanding these common myths, you have a better understanding of how this could benefit your life. This type of insurance is something that many people will want to think about as this can make their lives much easier.
In the event that you do suffer a tragic accident and are disabled, how would you pay your mortgage or rent? How would you put food on the table? Pay those bills that are coming in? This is the value of long term disability insurance.
This insurance can make you worry less about how you are going to be able to pay for your home, bills and food.
Many people have found that it is this type of insurance that kept them from losing the quality of life that they currently have.
It has also helped to ensure that their families were taken care of while they healed and got back to one-hundred percent.
What Happens When You Need LTD?
So, what happens when you do need to use your long-term disability insurance? This can be a long process, so don’t expect it to happen overnight.
There are many people who find that the process itself is long and grueling. However, remember that these insurance companies do not want people taking advantage of the policies that they offer.
In most cases you will have to:
- Fill out the paperwork to make a claim on this insurance policy
- Provide medical documentation that shows that you are disabled and unable to work
- Wait for a response that can take a month or longer to get
Many people find that this process can be stressful when they are already dealing with a disability. However, working with a personal injury lawyer can help you dramatically.
A personal injury lawyer can handle the paperwork for you and ensure that everything is filled out properly, which is often the most common reason for a claim being denied.
Our team an Conte Lawyers are here to help you through what is a very difficult problem in your life. The sooner that you are able to get your insurance payments, the sooner you can focus on your own health and wellbeing. Contact us for a free consultation.
Contact us today for a FREE Consultation.