The Truth About Disability and Coverage
Disabilities are common. Insurance companies, who have to shell out disability money to those who had taken out disability policies, say that one out of eight persons becomes disabled every year. That's 11 percent.
The elder you become the more the chances of your becoming disabled. A 30-year old man is less likely to suffer from a long-term disability than a 30-year old woman, the odds being one-in-five for men and one-in-three for women.
There are many causes of disability, could be an accident or an injury sustained during work or at home. However, the main reasons for permanent disabilities are cardiac diseases and spinal problems.
Disabilities can be off-putting, demoralizing and intimidating. They greatly limit and curtail your activities. It is seen that half of those people who carry a disability for more than 6 months, remain with it for five years. It is not as if the mortality rate for the disabled is high, advanced modern medicine has seen to it, the chances of being disabled for more than three months are much greater than those of dying prematurely.
Surprisingly not many US workers buy disability insurance. Somehow they feel that it is something that happens to others and they are immune from it. White collar workers feel that it is the fate of workers in hazardous conditions to become disabled, while workers in hazardous jobs, who are the most vulnerable, feel that it is the duty of their employers to protect them. Also there is a misguided belief that all workers are totally secure in federal programs like Social Security and
Workers Compensation.
Social Security does help, but the help does not come immediately. You will have to wait for five months for it. Eligible claimants do not receive their first check until the sixth month. Low wage disabled will receive benefits, at much reduced rates compared to what is due to a DI beneficiary. Nevertheless, he will receive it from the month in which the application was first filed. Applications to social security are subject to inspection by their determination services and only around 67 percent of the claims meet with their approval.
What to Do If You Become Disabled
God forbid, you do become disabled, then what is the first thing that you should do? First check what disability coverage is offered by your employer. If the company has a short term disability policy, ask the manager or human resources department to help you negotiate through the process. They have the expertise and the knowledge and they will do a speedier and more competent job.
You can also file a Family and Medical Leave Act (FMLA) claim through the US department of labor. This will guarantee that your job will remain secure and that you cannot be terminated for at least 3 months.
It is of the extreme importance that you provide a written treatment plan from your doctor. This will reassure the employer that within a certain period, as specified by your doctor, you will be physically able to return to duty and be able to do your work. It is seen that the longer a person is out of work, the more his chances of returning to the workplace diminish. A normal short-term disability insurance plans last 26 weeks, beyond that an employer prefers to terminate the employer. So it is of the utmost importance that the chain of communication between the physician, the company and you, the worker is not broken.
Disabled workers when they are ready to return to work, free of their mental and physical trauma, may ask for or the companies themselves may offer a transitional period, between two to four weeks.
Just as many employees don't buy disability insurance; companies also make the same mistake. Some are too callous to sign up; others feel that they don't need it. Some feel it is a waste of money and they really cannot afford it but some do have a modified policy in the form of a salary continuation plan based on seniority.
Individual disability coverage is offered by most carriers, with premiums paid by the policyholder. As with all coverage, disability insurance must be applied for before a condition appears. You cannot avail of a disability insurance policy after you become disabled; you have to apply for it before the condition appears.
Employers are always wary that as their workforce ages, they may use disability benefits as an additional cushion to line their retirement nests. Employees, on the other hand are worried that filing a disability claim makes them vulnerable to termination after the FMLA - mandated 12 week period.
It is in the larger interests of all three, employers, employees and the insurance industry to work together to keep workers healthy and productive.
