DEFINING PRIVATE LONG-TERM DISABILITY BENEFITS

Private long-term disability benefits are benefits purchased from private insurance companies like Liberty Mutual as a form of income replacement in the event of disability. Jobs have certain requirements – standing, walking, seeing, lifting, carrying, and intellectual decision-making. When people become disabled and can no longer perform their job duties, private LTD provides income replacement through private companies, ensuring financial stability to pay bills and maintain their lifestyle.

WHO QUALIFIES FOR BENEFITS

Long-term disability benefits typically appear in two distinct contexts. First are employer-based private long-term disability benefits, where employers provide insurance policies to protect their valuable employees. These benefits may be employer-paid or offered as an optional benefit that employees can choose to purchase. Common in manufacturing, government positions, and retail chains like Walmart and Publix.

The second group includes high net worth, high-skill individuals such as doctors, surgeons, pilots, attorneys, and software developers. These professionals have specialized skills that provide high income but are not easily replaced. For example, a surgeon who injures their hands may be unable to perform surgery, making their specific income level difficult to replace.

COMPARING LTD TO SOCIAL SECURITY DISABILITY

Income replacement for disability comes in three contexts: workers compensation, Social Security disability benefits, and private long-term disability. The disability process shares similarities between Social Security and LTD benefits, following similar evaluation steps:

• Evaluation of substantial gainful activity
• Assessment of medical impairments
• Consideration of pre-existing conditions (specific to LTD)
• Analysis of ability to perform past work
• Evaluation of ability to do other work

MAINTAINING BENEFITS

A key difference in the long-term disability process is the level of ongoing scrutiny. While Social Security conducts reviews every seven years, LTD carriers perform at least annual reviews and may employ private investigators to verify claims. This heightened oversight has led to the development of benefits defense services, particularly for high-net-worth individuals maintaining their benefits.

SEEKING LEGAL ASSISTANCE

It’s crucial to engage legal representation early in the LTD process, particularly after an initial denial. The process is governed by ERISA (Employee Retirement Income Security Act), and decisions are initially reviewed by the insurance company itself. Once a case reaches federal court, no new evidence can be introduced, making early proper documentation essential.