One quarter of all workers become disabled before retirement age, and need the financial assistance of long term disability insurance. Health care for those with disabilities may be quite expensive, and long term disability insurance or other benefits may help to off-set those costs, if you qualify.
You are considered to have a disability if you have a physical or mental impairment that substantially limits major life activities. Under the Balanced Budget Act of 1997, if you have a disability and are employed, you may qualify for Medicaid long term disability insurance even if you cannot qualify for Medicaid under other provisions because of your income.
Social security also provides long term disability insurance to individuals through the Social security long term disability insurance program. They give long term disability insurance to people who cannot work because of a disability. Social Security does not pay short term or partial disability, only long term disability insurance. If you are disabled, you should apply for long term disability insurance from Social Security as soon as possible. Social Security's long term disability insurance does work retroactively, but only up to one year. It is possible to apply by phone, mail, or visiting a local Social Security office. Their toll free number is 1-800-772-1213. If you go in person to visit them, be prepared with birth, financial, and military records.
People with disabilities may also be eligible for Medicare's long term disability insurance. This insurance includes two parts: hospital insurance and medical insurance. It is paid for by taxes, and requires you to pay a small monthly premium; although, if you have low income, your state may pay these premiums for you. Your case is reviewed occasionally to determine if you still need long term disability insurance. How often it is reviewed depends on your condition. Although most citizens must be at least 65 to obtain Medicare, if you have a disability you can get Medicare's long term disability insurance at any time.
If you have a child who is disabled, you may also be eligible to receive Social Security's long term disability insurance, if they meet the requirements listed above to be classified as disabled. Neither you nor your child can receive any long term disability insurance unless you have worked long enough, and put enough taxes towards Social Security to qualify. Another restriction that may apply is that Social Security limits the amount of money that can be paid to one family, so if you have a child and/or spouse who receives long term disability insurance or other benefits, it will affect how many benefits you and remaining members of your family can be given.
Even if you are not currently disabled, it may be wise to purchase disability insurance. Many people need it eventually, and fees for retirement or nursing homes are often steep. The high costs of health care may drain all your assets and even cause you to lose your home. The number of policy-holders with long term disability insurance continues to go up as people see their loved ones suffer disabilities and the financial losses that come with them. If you are already disabled, it's not too late to preserve your financial security by applying for long term disability insurance from Social Security or Medicaid.
By Riannon Cutler