Program Overview

In California, in order to make life easier for its employees, also has private insurance like LTD. This is Long-Term Disability Insurance set up to help people with disabilities. They become eligible for it when they are unable to work due to their condition. LTD insurance basically helps to replace a portion of the employee’s income. This makes up for the amount lost due to the inability to work. This helps them to maintain their living standard without having to compromise on any necessities.
LTD insurance is made up of different policies. They have different details about signing up for a plan as well as for the benefit you will receive. In order to avail the benefits of this insurance, you have to contact the appropriate parties. Therefore, if you sustain an injury, do not delay contacting either your human resources manager or your insurance agent. The early contact will be helpful for you in receiving the benefits you require during the time of need.

Eligibility Criteria

LTD insurance is given to individuals who cannot work at all or only work part-time due to their disability. This program has different enrollment requirements and benefits. The choice of which LTD policies to pursue depends on private companies. The LTD policies to adopt depends on them. Therefore, it is a good option to contact the human resources department in your organization. This would help you to be well aware of the policies followed by your company. Thus, you can avail them in the correct manner then.
LTD Insurance is provided to people through an employer, union or other professional organization. This kind of policy is known as group coverage. The other type of policy is individual coverage which can be purchased from an insurance company. However, it must be kept in mind that converting group policy to an individual one may not be possible. Therefore, one should not expect it when they leave their employer or professional association.
Medical history is considered by LTD providers. This medical history is considered in a different way depending on the kind of coverage provided. This can be explained as follows:

1. Individual Coverage: The insurance company looks into the factors that may cause disability in the future. This is known as “potentially disabling conditions”. In case of treatment for a potentially disabling condition for a certain period of time, your insurance may be disapproved. The treatment mentioned can include aspects like advice from a doctor and medication. The concept of reviewing medical history by the LTD insurers is known as medical underwriting.
2. Group Coverage: LTD providers may offer you group coverage in the case of a pre-existing condition. This is when you have had a treatment for a condition within the past three to six months. Whilst offering this kind of coverage, there will be a set period of time when they won’t pay a benefit. This time period can range from 12 to 24 months. It is a concept that is usually referred to as a pre-existing condition exclusionary period.

There are two types of LTD insurance if we consider individual coverage:

1. Non-cancelable: This policy has extra security that premiums can never be raised above the decided ones. This plan cannot be canceled as long as the required premiums are paid on time.
2. Guaranteed renewable: In this policy, the premiums can be raised. However, the reason for the change must affect an entire class of policyholders.

LTD providers consider two definitions of disability when it comes to the eligibility of this policy. These can be explained as follows:

1. Own Occupation: This definition considers an individual as disabled if they are unable to perform their own job. The benefit check received for this condition would be from two to five years.
2. Any Occupation: This concept outlines that in order to be labeled disabled, the person must be unable to perform any job. The benefit check for this definition is provided to the person until they go back to work. Another limit for it can be until the policy ends.

LTD insurance also has certain exemptions that must be kept in mind if applying for it. Its policies are designed in a way that it does not cover the disabilities caused by the following:

1. Drug abuse
2. Alcoholism
3. Attempted suicide
4. Attempts to commit a crime.

For Further Information

If you are looking for information about Social Security benefits for people with disabilities visit California Department of Human Resources website. Visit Benefits by State for more insights.