How Your Pre-Disability Earnings Affect Long-Term Disability Benefits In Florida
Long-term disability (LTD) insurance provides vital financial support when illnesses or injuries happen and prevent you from working for an extended period. However, the amount you receive is not always straightforward. Most employer-sponsored LTD policies base benefits on a percentage of your pre-disability earnings. Our Jacksonville long-term disability lawyer explains the various factors that influence the amount of your benefits and what to do if your benefits are lower than expected.
Factors That Influence The Amount Of Your LTD Benefits In Florida
Employer-provided long-term disability insurance protects you when injuries or illnesses keep you from working for more than a year. Insurance companies use specific formulas both in reviewing claims and determining your monthly LTD benefit.
According to the U.S. Bureau of Labor Statistics, employer-provided LTD plans typically replace up to two-thirds of your lost wages. However, several factors can influence the final payout, including:
- Base Salary vs. Total Compensation: Some policies only cover your base salary and not bonuses, commissions, or other compensation.
- Benefit Caps: Your plan may impose a maximum monthly benefit, which could reduce your payment if you are a higher earner.
- Reductions Due To Other Benefits: Your payments can be reduced if you collect Social Security Disability Insurance (SSDI), workers’ compensation, or other benefits.
- Elimination Or Waiting Period: The waiting period before your benefits begin is typically 90 to 180 days.
- Taxability of Benefits: If your employer pays for your LTD policy with pre-tax dollars, your benefits may be subject to federal income tax.
It is important to be aware of these factors in determining what you should get in terms of LTD benefits and identifying potential discrepancies in your claim.
What to Do If Your Florida LTD Benefits Are Lower Than Expected
If you believe your Florida long-term disability payments are lower than they should be, you have options to dispute the insurer’s calculations.
The Employee Retirement Income Security Act (ERISA) sets federal standards for employer-sponsored disability insurance, giving you the right to challenge incorrect and unfair benefit determinations. Take these steps to uncover possible miscalculations or other errors in your Florida LTD benefits:
- Review Your Policy: Carefully examine your LTD plan’s terms to see how your pre-disability earnings are defined and whether any exclusions apply.
- Request a Benefit Calculation Breakdown: Ask the insurer for a detailed explanation of how your benefits were determined.
- Gather Supporting Documentation: Pay stubs, tax returns, and employer compensation records can help prove your pre-disability earnings.
- Appeal the Decision: If there is a discrepancy, you may file an appeal within the timeframe outlined in your denial or approval letter.
Contact Our Florida Long-Term Disability Lawyer for Help
Navigating a Florida LTD claim can be complex, especially when insurers underpay benefits. If you believe your long-term disability payments are lower than they should be, contact Farrell Law Firm for help. Our experienced Florida long-term disability lawyer understands the tactics insurers use and fights to get you the maximum benefits you deserve. Schedule a consultation today in our Jacksonville or Orlando office.
Sources:
bls.gov/opub/ted/2020/short-term-and-long-term-disability-insurance-for-civilian-workers-in-2020.htm
dol.gov/general/topic/retirement/erisa
