Long term disability insurance – the basics
Long term disability insurance, just like any other insurance policy differs from company to another and from policy to another. Different policies in the same company might have different terms for how the policy will work in case of a disability. It is therefore imperative for the person seeking the insurance to ensure they read fully and understand the policy document before they can accept to take the insurance cover. To ensure that the cover helps you when you are in need, here are some basics to help you understand how long term disability Cantini law works.
Taxes on the benefits – the benefits you get from the insurance policy can be taxed or not depending on how you pay for the policy. If you pay for the premiums using your own money after taxes, then the benefits will not be taxed. If the premiums are paid by the company and usually this will be before taxes, then the benefits received will have to be taxed.
What happens when you are partially disabled – if it happens that you are partially disabled, meaning you can be able to take some work New Brunswick car injury lawyer then they consider how much you are able to earn in your new job. If you earn less than 20% of what you used to earn, then you will receive the full compensation as indicated in the policy. If you earn between twenty percent and eighty percent of what you used to make, the insurance company compensates you a proportion of what you could possibly earn. If you are able to make more that eighty percent with your partial disability then the insurance company does not consider you as disabled at all and will not pay you any compensation.
Paying premiums while disabled – most policies will require that you stop paying premiums after you have become disabled Personal Injury and already receiving the benefits. This is to caution you from having to pay for premiums when you cannot be able to fend and meet the needs required well. It also ensures that the money that you receive is the money agreed on and it does not have to go back again to paying premiums as expenses.
Cost of the insurance – Long term disability insurance costs more than short term disability insurance. This is because it lasts longer than the short term one and offers better coverage for the insured person. The cost however is calculated based on certain factors including the age and the occupation. It is also calculated as part of the salary so the amount as income also plays a part to how much the premiums will be. If the employer helps to pay for the insurance plan then it costs less even after the these considerations have been put in place.