Disability insurance provides income protection in the event you become disabled. Disability benefits become payable after you have been continuously disabled for the entire benefit waiting period and remain continuously disabled. The unfortunate thing with long-term disability claims is that at any given time, the long-term disability carrier can make the determination that they no longer believe that you are eligible for benefits.
The moment your claim has been approved, your disability carrier will evaluate your disability claim monthly. Disability insurance companies are continuously investigating your claim and looking for any reason to discontinue benefits.
Disability insurance carriers also terminate benefits based on:
• The date you are no longer disabled
• The date you fail to provide proof of continued disability and entitlement to benefits
• The date your maximum benefit period ends
• The date you die
• The date benefits become payable under any other LTD plan under which you become insured through employment during a period of temporary recovery
The wide variation among long-term disability policies makes it important that you read your policy carefully – your income is on the line.