Report Shows Emerging Trends in Long-Term Disability Claims

January 16, 2013 (Press-News.org) Social Security Disability Insurance is a great benefit for Americans with medical conditions that render them unable to work. However, it is important to remember that SSDI only provides for a basic standard of living. Many people who become disabled after progressing in their careers find that SSDI benefits are not sufficiently robust to cover their monthly expenses.

For that reason, many people choose carry long term disability insurance (either through their employee benefit program or through a private policy) in case they develop an illness or injury that requires them to leave the workforce. Depending on the policy, LTD insurance will usually pay between 50 and 60 percent of a disabled worker's salary.

Unfortunately, LTD insurers don't always uphold their obligations when it comes time for the policyholder to make a claim. Insurers regularly deny valid claims, either because the claimant has not provided sufficient information or because the claims reviewer is interpreting the policy incorrectly. For this reason, it is a good idea to consider working with a disability insurance lawyer when making an LTD claim.

2011 LTD claims survey

If you are considering making a claim for long term disability benefits, it can be helpful to understand how your individual situation fits in with the industry as a whole. Every year, the Council for Disability Awareness conducts a review that analyzes trends in LTD claims throughout the United States. Its 2011 report (which reviewed data from 2010) revealed some very interesting statistics.

The CDA found that LTD insurers paid out approximately $8.3 billion in benefits in 2010, a 1 percent increase from the year prior. At the same time, the total number of employees covered by employer-sponsored LTD policies declined by about 0.8 percent, largely because of layoffs and cost reductions caused by the economic recession.

As in the several years prior, musculoskeletal problems and connective tissue disorders were responsible for the biggest share of long term disability claims in 2010. Nervous system disorders, cardiovascular problems, cancer, injuries and mental health disorders were also common causes of both new and existing LTD claims.

Insurance companies responding to the CDA's survey reported that LTD claims have increased in duration. They attribute this in part to the struggling economy, noting that it is harder for disabled workers to find suitable positions when there are fewer jobs available overall. In addition, the insurance companies pointed to the overall aging of the U.S. workforce and the fact older workers tend to develop more severely disabling conditions.

When asked, most LTD insurers reported that they did not expect to make significant changes to the way they handle disability claims. Still, even without major changes, the disability claims process can be extremely confusing and often discouraging. If you or a loved one is having trouble with your LTD claim, talk to an experienced disability insurance attorney who can help you figure out your best options for moving forward.

Article provided by Edelstein Martin & Nelson
Visit us at www.insurancedisabilitylawyer.com