Please Explain How Disability Insurance Works (medical, plan, coverage, government)

[CAVA1990]

If someone has a debilatating disease such as MS and is getting to the point they can no longer work what's the best course of action if they have short and long term disability coverage through their employer? Do they immediatelly go on long term until such time they get approved for Social Security? Anyone have experience with making the transition from the workplace to government disability using a private plan? Is it fairly straightforward assuming you have adequate medical documentation? Really only interested in hearing from folks who have first-hand knowledge, not just anecdotes.

[GCPA]

OK, I'll take a shot at it.

Here's my interpretation.....

Employer provided plans are separate from Social Security Disability. Can have and be collecting from both.

You would first start off with the employer short-term since it has the shortest elimination period...usually 7 days for sickness. Once that is maxed out, usually somewhere from 13 to 26 weeks, the long-term plan will pick up where it leaves off. This typically will run until age 65. But, plans vary.


Social Security, I believe, has a 5-month elimination period. Need to go to the SSA for this as it is separate.

With both, you have to jump through their hoops to get qualified...provide documentation, have exams....provide whatever they need as proof.

Also, don't forget to check any life insurance policies the person may have. Might include Waiver of Premium rider, in which case the company will waive premium payments if the insured becomes disabled.