Ralph stressed the importance of signing up for his benefits during the initial enrollment period when his medical history would not be subject to review. It would also be the one time Mike could enroll for long-term disability benefits and life insurance with his MS diagnosis. And in Mike’s situation, Ralph said he seriously should consider both.
Because of the way the system worked, Mike wouldn’t be eligible for private disability pay, if he became disabled, until he’d worked 15 months at his new paper. Still, Mike figured it was worth the extra deduction from his paycheck especially since his doctor didn’t think he’d have any major troubles in the near future. By signing up for disability income protection, Mike ensured himself a source of income in the future if he had to go out on leave for an extended period because of his condition. (Private long-term disability income could supplement his pay up to 60 percent of his pre-tax gross earnings.)
Long-Term Disability 101: Four Key Points
- Long term disability income coverage can be accessed through group or individual plans. There are differences in how each type takes into account medical conditions that existed before enrollment in the coverage.
- There is a service wait, the time period that an individual needs to be part of the group before they are enrolled in benefits.
- Any medical condition for which an individual received treatment, such as consulting a doctor or being prescribed medication, three to six months before enrollment in group coverage is considered to be a pre-existing condition. Long term disability coverage vary the amount of time designated as an exclusionary period, a time period when pre-existing conditions are not covered. However, after exclusionary periods pass, pre-existing conditions are then covered.
- The combination of the service wait and the pre-existing condition exclusionary period determine how long an individual would have to be in the group before their pre-existing condition would no longer be considered and they would be eligible for the long term disability income coverage.
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