A significant amount of people live with chronic disabilities. The Centers of Disease of Control and Prevention (CDC) reports that 26 percent of U.S. adults have some form of long-term disability. For some people, their disability is relatively minor. For others, it is completely debilitating. Disability benefits provide much needed financial support. You may have an LTD policy that pays benefits. Unfortunately, some people find that their benefits are canceled. In this article, you will find an overview of six key reasons why long term disability permanent disability benefits can be canceled.
- Failure to Apply for Social Security Disability Benefits
While long-term disability insurance coverage (LTD coverage) can be purchased on the private individual market, most people who have a long-term disability policy have an ERISA-based plan that comes from their employer or their spouse’s employer. ERISA plans are standardized. Most ERISA disability policies require beneficiaries of long-term disability payments to apply for Social Security disability benefits (SSDI or SSI). If you fail to apply for Social Security disability, your LTD benefits may be canceled. Applying for Social Security disability benefits for the first time? Click here to find a representative.
- Time Limitation of Long-Term Disability Coverage
Many long-term disability policies have a time limitation for coverage. The limitation will depend on many factors, including the specific terms of the disability policy and your medical condition. That being said, it is not uncommon for long-term disability policies to limit coverage for certain conditions at 24, 36, 48, 60, or 72 months. Your benefits could be canceled if you run out of time.
- Not Continuing Medical Treatment as Required By the Plan
As a condition to continue receiving benefits, most long-term disability insurance policies require people to continue their medical treatment. If you fail to keep up with your medical treatment, a private insurance company that provides your long-term disability benefits could use that as a justification to stop paying benefits. Make sure that you stick with your treatment.
- Discovery of Inconsistency After Surveillance or Investigation
A long-term disability insurer may continue to investigate or evaluate a case even after long-term disability benefits have been approved. If there is an inconsistency discovered or they conduct surveillance to determine that there is an issue, the company could move to cancel LTD permanent disability benefits. If you have any questions about appealing a cancellation on these grounds, an experienced disability lawyer can help.
- Aging Out of LTD Permanent Disability Benefits
Finally, it is possible to age out of LTD permanent disability benefits. In fact, most long-term disability insurance policies have an age limit. While there is some variation from policy to policy, the majority of LTD insurance policies cut off benefits once a person reaches their ordinary age of retirement for the purposes of Social Security. Depending on your current age, your age of retirement is likely 66 years old or 67 years old. At that time, you can transition to receiving Social Security retirement benefits.
If your benefits have been canceled or denied, it’s important to contact a skilled professional as soon as possible.