Jul 31, 2025 - Long Term Disability Insurance by Seltzer & Associates
You could have access to millions of dollars in benefits to protect you from the vagaries of an unknown future. Or you might find yourself holding an empty bag. The time to find out is right now.
Nobody wants to think about using long-term disability insurance. The thought of being saddled with a mental or physical disability that interferes with your ability to practice your profession is not one most of us spend time dwelling on. And that’s a fine approach—most of the time. But every once in a while, it is important to give the issue some thought.
When you’ve invested so much in your career, it’s essential to take the right steps to protect yourself, your family, and the business you’ve built. Disability insurance is a key component of a comprehensive plan of protection. But it’s important not only to purchase a disability insurance policy but to understand the terms of your policy and its value. That value could have a tremendous impact on your peace of mind and quality of life as time goes on.
Private Disability Insurance vs. Group Disability Insurance
When considering the value of your policy, you first need to understand whether you are looking at a private disability insurance policy or a group disability insurance policy. Private policies are policies you purchase individually with an agreement directly between you and the insurance company. Group policies, on the other hand, are usually purchased through an employer, and the employer negotiates the terms with the insurance company. Private and group policies can cover either short-term disabilities or long-term disabilities, but the same policy will not cover both.
When you purchase a policy through a group, you will usually pay lower premiums. However, the coverage provided and benefits available may not provide the protection you need. When you purchase a private disability insurance policy, you can customize your policy to better suit your needs.
For instance, if a dentist were unable to work due to carpal tunnel syndrome, either type of policy would probably pay a percentage of that dentist’s income while the dentist is not able to treat patients. The group policy might pay a smaller percentage, and that percentage might only include salary and not any commissions. By contrast, a private insurance policy might pay a percentage of both salary and commissions or other income.
Calculating the Value of Your Policy
To determine the value of your long-term disability policy, you need to look at the policy details. Your benefits may be set up as a percentage of income, or they could be a set amount per month. If they are a percentage of your income, obviously, you need to consider the percentage, but you also need to see what that income includes and whether the amount is capped. For instance, will the benefits only be calculated based on the first $10,000 per month of your income? Or is there a maximum monthly benefit payment? Are there any deductions or offsets you need to factor in?
You also need to consider when the plan will start paying benefits and how long those benefits can continue. There can be a tremendous variation in the length of time a long-term disability policy will continue to pay benefits. Some discontinue payments after two years, while others may continue until you reach retirement age.
Once you’ve taken all this information into account, multiply the percentage by your monthly countable income to get an estimate of the monthly benefits you’d receive under your policy. If your policy has a defined time limit for benefits, then estimating the maximum value of your policy is pretty straightforward. If the policy continues until retirement age or some other term that could be longer and indefinite, then the nature of the disability and the age of onset would have a huge impact on the amount you would be likely to receive from the policy.
Studies reported by the National Institutes of Health have found that patients are more likely to recover abilities when their disability stems from a catastrophic event such as an accident rather than a condition that causes a gradual onset of disability. A physician who is unable to practice medicine because of injuries suffered in a bicycle accident may only require disability benefits for a year or two, while a chiropractor who has to stop practicing because of degenerative disc disease may need to rely on disability benefits until retirement age.
Consider Exclusions
The value of your long-term disability policy revolves around more than just money. On the plus side, your insurance can allow you to feel secure taking on obligations such as expanding your practice. On the negative side, however, you need to see whether the terms in your policy contain limitations or exclusions that could reduce the practical value in your particular case. For instance, does the policy exclude applicable pre-existing conditions? If you are concerned that rheumatoid arthritis could impact your ability to continue to perform surgery, for instance, and your policy will not provide benefits if RA symptoms prevent you from working, then the practical value of that policy for you can be severely reduced. In addition to excluding pre-existing conditions, policies commonly exclude disabilities related to substance abuse, mental health issues, and high-risk activities.
Do You Have What You Need?
Once you understand the monthly payments and total amount you might be eligible for under your policy, compare them with your regular expenses. Do you have other sources of income that could fill any gaps? Are you prepared to draw on savings to meet financial obligations? It can be hard to estimate needs for the future, but it is important to see if there are glaring gaps between coverage and needs, and to develop a plan for addressing needs in the future.
For some people, an additional policy or increased coverage might be a good answer. But in addition to having the right coverage, it is important to ensure that when you need benefits, the insurance company honors its obligations to you. Disability insurance providers can be notoriously reluctant to pay claims, and they often insist that a policyholder does not qualify for benefits even when the disability is undeniable. Our team focuses on helping professionals obtain the benefits they’re entitled to under the terms of their policies. We understand how devastating it can be to find yourself unable to practice the profession you’ve perfected, and we work to ensure that you receive the respect and resources you need to maintain your life and standing during this challenging time.
When You Need Long-Term Disability Insurance Benefits, You Can Count on Seltzer & Associates
When you’ve paid premiums to an insurance company faithfully for years, it seems like the ultimate betrayal to be subjected to harsh treatment when a setback in your life requires you to file a claim. We know that’s not fair, and we know how to work effectively to show the insurance company why you are entitled to benefits. When an insurer acts in bad faith or unreasonably, we also know how to succeed with insurance litigation to recover the benefits you deserve.
Whether you are at the start of the claims process or you’ve become frustrated or uncertain about the process, the team at Seltzer & Associates is ready to help. To schedule a free consultation to learn about the assistance we can provide, call us at 888-699-4222 or contact us online today.