Temporary Disability Insurance

Temporary disability insurance (TDI) is an insurance policy that is able to provide individuals with financial support. This will typically only be offered to an individual who is unable to work due to a non-work-related illness or injury. The first temporary disability insurance program was established in 1942, although it is only currently available in Rhode Island, California, Hawaii, New Jersey, New York and the Commonwealth of Puerto Rico.

A look at the New Jersey temporary disability insurance benefits is able to give you an insight into the specific laws. Temporary disability insurance in this state will provide cash benefits that are payable to an individual who is unable to work due to sickness or injury that has not specifically been caused by their job. A worker must have been employed by a New Jersey employer for a minimum of 20 weeks, and they must earn at least $140 per week, or $7200 per annum. Any claim will only cover the injured party's potential wages.

Temporary disability insurance will cover state employees, county and municipal workers whose employers choose to provide this specific insurance. As mentioned, this type of insurance will typically cover a disability or a serious health condition which is not related to the job. You will also find that temporary disability insurance is able to cover pregnancy, or the specific period of incapacity due to prenatal care. This will generally be up to 4 weeks prior to the expected delivery date. Cover will also be in place for recovery from childbirth, which will typically be six weeks after the actual delivery date. However, this can be extended if it is medically necessary.

State temporary disability insurance will ensure that eligible employees will receive two thirds of their weekly salary. This has a maximum capped amount of $546. An alternative to this is that an employer may be able to offer a private plan, which will initially need to be approved by the state. You will generally find that private plans are likely to have better coverage, easier eligibility, and lower prices when compared to a state plan. There is also an additional program which is known as the disability during unemployment program that is available to individuals who, unfortunately, become disabled more than 14 days after the last day that they worked.

In order to finance temporary disability insurance, both employers and employees will contribute a certain tax amount. The New Jersey temporary disability insurance and benefits laws were extended in mid-2009. They are now also able to provide up to 6 weeks of family leave insurance benefits. This will allow certain individuals to bond with their newborn or newly adopted children, or indeed to take care of a sick family member. However, you should be aware that family leave insurance is entirely financed by employees.

You will find that the benefits offered in a temporary disability insurance policy in California, Puerto Rico and Rhode Island are the same irrespective of whether the workers are employed, unemployed or currently not in employment. However, New York, New Jersey and Hawaii currently provide two separate disability benefit programs. One program will specifically cover individuals who suffer a disability whilst they are employed or even shortly thereafter. The other policy is specifically aimed at individuals who become disabled whilst they are unemployed.

The actual definition of disability is when an individual is unable to perform regular tasks at work due to either their physical or mental condition. California will also include individuals who may be infected with a communicable disease, acute alcoholics, and drug addicts who are currently undergoing treatment. However, the definition of disability varies somewhat in other states. Both New Jersey and New York are known to be fairly strict, and New Jersey has stated that an individual must be unable to perform any type of paid work to be considered eligible for temporary disability insurance. New York and Puerto Rico will require an individual to be unable to perform any type of work for which they are considered to be reasonably qualified.

Hawaii, New Jersey, New York, and Puerto Rico will also exclude any temporary disability insurance payment if it is believed that the disability was caused by wilful, intentional, or self-inflicted injuries. Additionally, they will not cover any injuries that have been acquired during the perpetration of an illegal act. New York also excludes any injuries that are caused by an act of war or by an automobile. California and Puerto Rico are unable to pay claim if the individual is confined in an institution as a drug addict, dipsomaniac, or sexual psychopath. California will not support any claim if the individual has been incarcerated. You should, however, be aware that as a claimant if you are dissatisfied with any determination of your disability claim, you have the right to appeal under all state laws.

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