Long-Term Disability – Is There A Need?

Recently, we wrote a post about the need for short term disability in the federal workforce. A need which is very important and is not available as a core or supplemental benefit.

Today, let’s explore federal long term disability. A good place to start is what is long-term disability? In short it is an insurance policy which will protect a federal employee for a long period of time. The long period of time may be between two and five years. Again, remember no such policy or option is available to the federal employee.

Workers Compensation is available to all employees. However; this policy only provides coverage in the event of an on-the-job injury.

What happens for off the job illness or injury? This is why a disability plan is critical to the financial well being of the employee.

Worthy of consideration in any type of disability program is coverage provided for total or partial disability? Also, what is needed to prove a disability. Elimination period before coverage. Will Workers Compensation offset benefits? Many questions must be considered and answered.

Also, for employees under the Federal Employee Retirement System a disability retirement option is available. Employees must have been employed by the government at least 18 months.

The Office of Personnel Management advises an employee to consider applying for a disability retirement only after their agency has exhausted all reasonable attempts to retain the employee in a productive capacity, through accommodation, reassignment, etc.

Disability whether short or long reduces income and also increases the monthly expenses. Consider additional cost associated with additional trips to the doctor, physical therapy, and pharmacies. Also, what about meals while waiting for appointment?

Long-term Disability coverage is important and all employees should carefully consider ownership.