What Is Long Term Disability and What Are The Two Different Types of Benefits?
It is important for people to understand that we are talking about long term disability insurance policies here. We are not talking about Social Security disability or state disability or anything like that. Long Term Disability claims can be broken down into two primary categories: (1) to people who individually have purchased a long term disability insurance policy, or (2) to claimants who have a group policy that they’ve purchased through their employers. These are two different animals. One is much better than the other. The problem is that most people don’t know what’s in their policy until they have a claim, and even then sometimes it’s too late.
For the long term disability policy you can purchase through your employer, a disability claim that would be governed by a Federal Act called ERISA, which stands for the Employee Retirement Income Security Act. It is a federal law that provides limited remedies in federal court. Instead of purchasing a group policy, you could have purchased an individual policy. An individual policy is a much better policy, and it allows you to sue in State Court instead of Federal Court if your benefits are denied.
In short, Long Term Disability applies to those who have purchased a policy either through one’s employer or individually. If you do not have an insurance policy, you may still be eligible for to apply for social security disability benefits.