Re: LTD and the 24mnth own occupation clause
Generally speaking, the "24 month Any Occ" clause of most LTD policies works like this:
During the first 24 months you are disabled, they review your case to see if you are disabled from your own occupation. After 24 months, a complete review is done on your case and they review your medical info, and all info regarding any training or work experience you've had, and see if you are able to perform work in ANY occupation for which you could be gainfully employed. Gainfully employed means they don't expect you to work at Walmart if you were a VP of a bank. The income needs to be close to what you were making before. In your specific contract, it sounds like they would see if there is ANY occupation you could work with your training and experience where you would earn at least 80% of your pre-disability income. BUT keep in mind, they don't get you these jobs, they just see if these jobs exist in the economy. So, its a lot easier for them to list out jobs they say are available, but actually getting these jobs are up to you.
My advice is if you are on LTD to file for SSDI immediately, because most LTD claims DO end at that change in definition at 24 months. If SSDI is awarded by then (and it could easily take until then to get approved by SSDI) then you won't suddenly be without an income. Most LTD plans require claimants to file for SSDI anyway, as that is an offset to their policy. If/when approved for SSDI, your LTD benefit will be reduced to the difference between what your LTD pays and SSDI pays. You don't get full benefits from both. So, for example, if you earn $1000 a month from your LTD plan, and then you get approved for $800 a month from SSDI, your LTD will drop to $200 a month so your total amount between the two is still just $1000.
Hope this info helps you some. And Good Luck!!!!
Last edited by Whynowthis; 05-07-2013 at 12:33 AM.