What Is the Cost of Long Term Disability Insurance in Pennsylvania?

Many Pennsylvania residents hesitate to purchase a long-term disability insurance policy because they’re worried about the cost. But the cost of long term disability insurance pales in comparison to the impact of not having the financial support you need when you can’t work for an extended period. That’s why we urge everyone in Pennsylvania to get a long-term disability.

The Pennsylvania long term disability lawyers at Capitan Law believe everyone deserves financial stability when a severe injury or illness strikes. We focus solely on helping people with long-term disability insurance claims. Learn more about what long-term disability insurance costs, the benefits it provides, and how we can help if you have an issue with your claim.

How Much Does Long-Term Disability Insurance Cost?

The cost of long-term disability insurance in Pennsylvania varies depending on age, occupation, health status, the policy’s specific terms, and disability insurance rates in your area. On average, premiums range from one to three percent of one’s annual salary. For example, someone earning $50,000 annually might pay between $500 and $1,500 for coverage.

Many employers offer long-term disability insurance as part of their benefits package. In some cases, employers may cover the entire cost of disability insurance premiums, making this valuable coverage available at no additional expense to you. In other situations, employers might pay a portion of the premium, with employees contributing the rest. This shared-cost approach can make long-term disability insurance more affordable for employees.

If your employer does not offer long-term disability insurance, you can purchase an individual disability insurance policy. The cost of an individual policy will depend on the coverage amount, benefit period, and any additional features you choose, such as cost-of-living adjustments or residual benefits.

While the premiums for long-term disability insurance represent an added expense, the potential benefits far outweigh the costs. This insurance provides crucial financial protection if you can’t work due to a disability, ensuring you can maintain your standard of living and cover essential expenses. Investing in long-term disability insurance offers peace of mind and financial security during uncertain times.

What Benefits Does Long-Term Disability Insurance Provide?

The benefits of long-term disability insurance vary depending on the policy and insurer. However, most policies provide several key benefits that offer essential financial protection and support during a disability, such as:

• Income Replacement: The primary benefit is replacing a portion of your pre-disability income, usually between 50 and 60 percent, though some policies provide as much as 80 percent. This income helps you cover your daily expenses and maintain your standard of living when you can’t work.
• Cost-of-Living Adjustments (COLA): Some policies include cost-of-living adjustments to increase your benefit amount over time. This ensures your benefits keep up with inflation and maintain your purchasing power.
• Waiver of Premium: Many long-term disability policies waive premium payments while you are receiving disability benefits. This reduces your financial burden by eliminating the cost of maintaining your insurance coverage during your disability.
• Survivor Benefits: If you pass away while receiving disability benefits, some policies provide several months of additional payments to your beneficiaries. This helps ensure your family has some financial support even after your death.

“Own Occupation vs. Any Occupation” Policies

One crucial factor to consider regarding long-term disability insurance is the difference between “own occupation” and “any occupation” policies. “Own occupation” policies provide benefits if you can’t perform the specific duties of your job, offering essential occupation coverage. For example, if you are a surgeon and can no longer operate, you would receive benefits even if you could perform another type of work.

In contrast, “any occupation” policies only provide benefits if you can’t work in any job that suits your education, training, and experience. This means you must be unable to perform any type of work to qualify for benefits, which is a stricter standard to meet.

Understanding this difference is crucial because “own occupation” policies offer broader coverage and more financial security if you cannot perform your specific job duties. Choosing the right type of policy can significantly impact your financial stability during a disability.

Having Trouble with a Long Term Disability Claim? We Can Help

Purchasing a long-term disability policy is only half the battle when it comes to claiming benefits when you can’t work. Insurance companies frequently deny these claims for many reasons, from insufficient documentation of medical conditions to disputes over a policy’s terms. It’s also important to consider short-term disability insurance, which can provide immediate financial support while you wait for long-term benefits. Whatever the issue is, our Philadelphia long-term disability claims attorneys at Capitan Law can help you file a claim. Our in-depth experience with these cases allows us to advocate for your rights and help you get the support you need. Call (267) 419-7888 now or complete our contact form for a free consultation.

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