DISABILITY
The Law Firm offers representation to all individuals who maintain private disability insurance. Private disability insurance can be obtained either through one’s employment, or through the purchase of an individual disability policy. The Law Firm has successfully represented physicians, attorneys, business owners and employees in a variety of disability insurance claims. In most cases, the application process, (the completion and submission of the application for disability benefits) is the most important part of the process. There are definite time limits within which such an application must be made, which time limitations are calculated upon the commencement of the disability. It is important to place the disability insurance carrier on notice of your disability even if you do not intend to file a claim or even if you do not follow through with the filing of the claim. Disability insurance companies routinely require supporting documentation demonstrating both the nature and extent of your disability, the treatment that you have received, the diagnostic tests that you have undergone, and all aspects relating to your current and previous financial circumstances. The proper completion and submission of the application for disability benefits is critical for a successful claim.
The application process, and availability of benefits differs dramatically depending upon whether the disability policy is a private policy, paid for by the individual who has become disabled, or whether it is part of an employee benefit plan whereby the premiums are paid in whole, or in part, by one’s employer. The tax consequences, in addition to other long term benefit differences, cannot be understated. As an example, the benefits one may ultimately receive can be taxable as ordinary income in the event the policy premiums were paid in whole, or in part, by an employer or are part of an employee benefits package. To the contrary, when the policy premiums have been paid by the individual alleging the disability, in almost every case, the monthly benefits are tax free.
In addition to the tax treatment of the benefits received, the type of disability (physical or non-physical impairment) must be presented to the disability carrier with all appropriate clarity so that all of the issues that may be raised by the carrier are addressed in the initial application.