Posted on Friday, August 8th, 2025 at 9:00 am
When purchasing a long-term disability (LTD) insurance plan, it’s crucial to understand the steps to take to maximize LTD insurance coverage. You should know how to choose the right coverage amount, what policy riders make the most sense for you, what documentation you’ll need if you ever have to file a claim against the policy, and how an LTD lawyer can help you obtain the compensation you need.
Choose the Right Coverage Amount
LTD policies compensate for lost wages caused by disabling injuries or other medical and pre-existing conditions that prevent you from working. However, these policies don’t cover 100 percent of your lost income. Typically, they range from 60 to 80 percent, with higher coverage options and premiums.
When determining what coverage option to choose, some questions to consider are:
- What are your monthly expenses, and what percentage of your income would you need to cover them?
- What is your current budget, and what is the maximum you would spend on premiums?
- What existing financial safety nets do you have? Do you have savings, income from a spouse, or other insurance coverage like workers’ compensation?
Add Policy Riders That Increase Flexibility
Riders are add-ons that can alter aspects of your insurance policy. Popular LTD policy riders include:
- Own-Occupation Rider – This rider allows you to recover compensation if you can’t perform your particular job, or are unable to work due to a disability, even if you could perform another job. This rider is common for individuals working in specialized fields.
- Cost of Living Adjustment (COLA) Rider – This rider is straightforward because it increases your monthly payments over time to keep up with the cost of living.
- Residual Disability Rider – This rider allows you to recover compensation if you can still work in a reduced capacity after becoming disabled. It can help make up the difference in your pre- and post-disability replace a portion of your income.
- Future Increase Option – This rider allows you to increase your coverage without the need for additional medical underwriting, which is where the insurance company evaluates your case. It can benefit those who expect their income replacement to increase.
- Catastrophic Disability Rider – This rider provides additional compensation if your pre-disability is particularly serious and impacts several aspects of your daily life, such as if you sustained a traumatic brain illness or injury that results in cognitive and physical impairment.
Document Your Condition Clearly When Filing a Claim
When filing an LTD insurance claim, it’s vital that you document everything clearly. This includes having robust medical evidence, demonstrating your functional limitations, and maintaining consistency throughout your claim.
Medical Evidence
When you seek treatment for your condition, your doctors will add notes and medical images, such as X-rays and MRI scans, to your medical records. These records are among the most important pieces of evidence when filing an LTD claim because they prove the extent and severity of your injuries.
Functional Limitations
It’s often a good idea to keep journal entries detailing how your disability limits your ability to perform certain tasks. These could be work tasks or tasks you regularly perform in your personal life.
While your medical records may include an evaluation performed by a physician or physical therapist, your personal documentation can still serve as additional evidence.
Consistent Statements
You should always be honest about the extent and severity of your disability, as that’s the best way to keep your statements consistent. If the insurance company feels that your statements about your disability and its impact on your life don’t add up, it may deny your claim because it doesn’t believe you.
A denied claim doesn’t necessarily mean you’re out of options for recovering the compensation you need from your insurance policy, but it can make it take longer to obtain.
How an LTD Lawyer Can Help Maximize Your Compensation
An LTD lawyer can help you maximize your compensation from an LTD insurance policy in several ways.
They can review your policy options and help you choose the coverage and riders that make the most sense. They can file your claim and deal with the insurance company on your behalf. And they can represent you in claim denials and protect your rights.
Contact Our Long-Term Disability Lawyers
If you’re considering long-term disability insurance, contact Capitan Law at (267) 419-7888 to speak with a highly qualified LTD lawyer in Philadelphia. We can discuss coverage options and policy riders and help you determine the best policy for your particular situation. Our lawyers can also assist and help you with filing an LTD insurance claim and seeking the long-term disability benefits you need if you have become disabled.
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