Disability Insurance in USA | A revival for the health of every worker in USA

There are two types of disability policies

Short-Term Disability (STD) and

Long-Term Disability (LTD):

1. Short-Term Disability policies – have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
2. Long-Term Disability policies – have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.

Disability policies have two different important protection features:

1. Noncancelable: this means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives the worker the right to renew the policy every year without an increase in the premium.
2. Guaranteed renewable: this gives the worker the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders.

How Disability Insurance Works (disability insurance in the USA)

Most times, insurance products will protect against a specific loss, such as when a property and casualty insurance plan occurs. However, in the case of disability insurance, this compensation relates to the lost income caused by a disability.

Additional options to consider when purchasing a Policy

• Cost of living adjustment:  The (COLA) increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
• Residual or partial disability rider: This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
• Additional purchase options:
  Your insurance company gives you the right to buy additional insurance at a later time.
• Coordination of benefits:
  The benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. The policy will make up the difference not paid by other policies.
• Return of premium:
  This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time.
• Waiver of premium provision: This clause means that you do not have to pay premiums on the policy after you’re disabled for 3 months or 90 days.

Disability Application Process (disability insurance in USA)

To do this, here are basic steps:

• You gather the information and documents you need to apply.
• Print and review the Adult Disability Checklist. It will help you gather the information you need to complete the application.
• You complete and submit your application.
• The application will be reviewed, so it will be on review to make sure you meet some basic requirements for disability benefits.
• The check whether you worked enough years to qualify.
• Then evaluate any current work activities.
• Also, they process your application and forward your case to the Disability Determination Services office in your state.
• This State agency makes the disability determination decision.

General Information to collect before Applying for Disability Insurance in USA

below are what you should know…

Information About You

• Your date and place of birth
• The name, Social Security number, and date of birth or age of your current spouse and any former spouse.
• know the dates and places of marriage and dates of divorce or death (if married).
• Names and dates of birth of children not yet 18 years of age.
• Your bank or other financial institution’s account number.

Information About Your Work

• The amount of money earned last year and this year.
• The name and address of your employer(s) for this year and last year.
• The beginning and ending dates of any active U.S. military service you had before 1968.
• Up to 5 jobs minimum that you had in the 15 years before you became unable to work and the dates you worked at those jobs.
• Information about any workers’ compensation, These benefits can:
  • Be temporary or permanent.
  • Include annuities and lump sum payments that you received in the past.
  • Be paid by your employer or your employer’s insurance carrier, private agencies, or Federal, State, or other government or public agencies.

Information About Your Medical Condition

• Name, address, and phone number of someone they can contact easily and who knows about your medical conditions.
• Detailed information about your medical illnesses, injuries, or conditions:
  • Names, addresses, phone numbers, patient ID numbers, and dates of treatment for all doctors, hospitals, and clinics.
  • And Names of medicines you are taking and who prescribed them.
  • Names and dates of medical tests you have had and who ordered them.

Documents the worker needs to Provide

So the worker may be ask to provide documents to show that they are eligible for such benefits:

• Birth certificate or other proof of birth.
• W-2 forms(s) and/or self-employment tax returns for last year.
• Medical evidence showing medical records, doctors’ reports, and recent test results.
• Proof of U.S. citizenship or lawful alien status if you were not born in the United States.
• U.S. military discharge paper(s) if you had military service before 1968.
• Award letters, settlement agreements, or other proof of any temporary or permanent workers compensation-type benefits you received.