ERISA and long term disability benefits

If you find yourself in position to make a long term disability insurance claim, you need to learn more about the Employee Retirement Income Security Act of 1974. Also known as ERISA, this federal law governs how employee benefits plans are administered by employers. In most cases, disability insurance is considered a part of an employee benefit plan.

While ERISA is supposed to make for a fair system, both for employers and employees, there are times when companies use it to their advantage. As a result, the employee is not able to take advantage of the benefits they are entitled to.

In the event that your claim is governed by ERISA, it is a must to know your rights. Furthermore, if your claim is denied, you need to file an appeal as soon as possible. This law requires that you exhaust all potential remedies, including appeals, before you are able to file a lawsuit. You have 180 days to file an appeal from the date that you receive a denial.

If you purchased an individual disability insurance policy, chances are that it is not governed by ERISA. This means you do not have to follow the same avenue regarding an appeal and potential lawsuit.

It is hopeful that you never have to file a long term disability claim. If you do find yourself in this position, it is time to learn more about ERISA, how your claim will be handled and your rights. Our “FAQS” webpage provides a wealth of information on ERISA, disability claims, appeals and related subject matter.