How does my salary affect my long-term disability claim?
policies pay a percentage of your salary
as the benefit. Salary
as defined in most disability
policies are base salary
and not overtime, bonuses or commissions. The employer reports salary
on a periodic basis and premiums are adjusted accordingly. It is important to ensure that your employer is reporting the correct salary
to the insurance company. Premiums that are taken off of your salary
do not always reflect your current salary
level. At the time of a claim
for long term disability
benefits, the insurer will be looking at the salary
as reported by the employer on the date of disability
. If the reported salary
and premiums that are taken off are lower than the actual salary
, the insurance company will try to use the lower amount. So, before making a claim
make sure your current salary
is being properly reported to the long term disability
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