What is voluntary long term disability insurance? It’s an insurance plan a worker can purchase that provides income if they are out of work for an extended period due to illness or injury. Voluntary long term disability insurance is different than long term disability insurance provided by your employer as an employee benefit. However, both types of long term disability insurance provide similar benefits.
While it cannot completely replace the income you would have earned if you could work, it can help you keep your financial footing when you cannot work. Contact a disability attorney in Woodbury, New York, to learn more about how you can obtain this insurance.
Long-Term Disability Insurance
New York’s Disability and Paid Family Leave Benefits Law requires most employers to provide disability insurance to their employees. This insurance provides 50% of the normal wages to employees who are sick or injured. Disability insurance also covers employees who didn’t get hurt at work and aren’t eligible for unemployment.
This law does not cover some employers. In those cases, the employer can provide voluntary long-term disability insurance for their employees.
The insurance mandated by the Disability and Paid Family Leave Benefits Law is not voluntary insurance. If you want voluntary long term disability insurance, you must purchase it separately from that provided by your employer.
Pros of Long-Term Disability Insurance
Voluntary long-term disability insurance protects you and your family by providing a portion of your income if you’re disabled. Pros of long-term disability insurance include:
- Payments based on a percentage of your income in case of disability
- Benefits are paid in cash, so there are no limits on how the money can be spent
- Helps you stay out of debt and avoid bankruptcy while sick or injured
- Provides the peace of mind that comes with knowing you’ll still have income even if you get injured or become ill
Cons of Long-Term Disability Insurance
When you buy voluntary long-term disability insurance, there is a trade-off between pros and cons. Cons of long-term disability insurance include:
- Pre-existing conditions are usually excluded so that the policy won’t cover them.
- You’ll have to use your short-term disability policy or live off your savings until the waiting period for your voluntary long term disability policy is over.
- Waiting periods can range from 30 to 180 days or more. Shorter waiting periods come with higher premiums.
- Long-term disability insurance can be expensive, particularly if you are older or in a high-risk job.
Is voluntary long-term disability worth it? Knowing that you are covered in case of disability can remove stress. Many people find that the reduction in their stress is worth the expense of purchasing a policy. You may not feel it is worth it if you cannot afford the cost. However, not carrying this insurance would leave you vulnerable if you get injured or become ill.
Obtaining Voluntary Long-Term Disability Insurance
Voluntary long-term disability insurance is available either through an independent sales broker or through your employer. If your employer does not yet offer it, you can suggest it to them. Employers who want to provide voluntary long term disability insurance can fill out a form and file it with the state government. They can either fill out Form DB-135 or Form DB-136, depending on whether their employees will be contributing to the insurance plan.
If a private employer chooses to provide long-term disability insurance, they must also offer Paid Family Leave benefits. It is not legal for a private employer to offer one without the other. Public employers, however, can offer one or the other.
Contact a Disability Attorney in Woodbury, New York Today
Should I get voluntary long-term disability? This is a question you must answer for yourself, but you will certainly be glad you have long-term disability coverage if you become disabled. It’s hard enough to be unable to work because of illness or injury. It’s much harder on both yourself and your family if you lose your income completely. Obtaining long-term disability insurance is one way to protect yourself and your family from the stress and heartache of financial instability.
Call Fusco, Brandenstein & Rada, P.C. at 516-496-0400 or contact us online to learn more about voluntary long-term disability insurance. Our full-service disability law firm serving Woodbury, New York has over 40 years of experience representing ill and injured workers. We are passionate about helping hard-working people get the benefits they need. Call Fusco, Brandenstein & Rada, P.C. at 516-496-0400 immediately.