Question
Does Guardian reduce the qualifying income when an STD becomes a LTD?
My STD Policy Clearly defines Insured Earnings combining Salary, Bonus and Commissions, The same Document goes on to describe LTD but in the Insured Earnings Clause describes it as: All Options. Insured Earnings With respect to short term disability, means your earnings from your employer. Including Salary, Bonus and Commissions... Please notice the Typo? “with respect to short” (should say “long”). Or is this a way for them to recalculate insured earnings when a STD becomes LTD? I’m starting my 3rd month in STD, and it seems I may continue on to LTD I read somewhere some insurers could reduce the qualifying income for the LTD. Does Guardian do that? In my case most of my income was commissions and I don’t see any other definition of Insured Earnings in the 270 page policy.
Answer
John, the document you are describing might not actually be the Long Term Disability Insurance Policy. The 270 document sounds like your employer’s benefits summary. So that document might not be controlling of your LTD claim. The LTD policy governing your claim will be controlling and give all the relevant terms. See if you can get a copy of the LTD policy on your claim and I will gladly review it for you. But keep in mind that STD and LTD policies are typically two separated insurance policies, as such, their terms can differ.
