I am David Martin with the Martin Law group. We help people with disability policies and ERISA claims. I post a new term every Thursday. Subscribe to get the Edge in understanding your policy.

Today we are going to be discussing What are my Pre-disability Earnings or Covered Earnings?

These terms refer to the amount of wages or salaries that the insured was earning just prior to disability. It typically excludes over time and may exclude bonuses and other non-standard compensation. Of course, many people begin to experience absences from work when they are chronically ill which eventually leads to the disability claim. Accordingly, the timeframe over which pre-disability earnings are calculated is very important if you are not being paid during those absences.

Policies can vary on this greatly. Some policies may look at the prior calendar year and some may look at the 12 months or 6 months immediately preceding disability. Some may look at an average time frame of the prior three years. It can vary and so exactly what the policy says is important on that issue especially if it serves as the basis for calculation on the amount of the disability benefit. It can also be important if there is a return-to-work attempt and wages earned while disabled still.

Remember we are here to help if you run into problems. Call us at the first hint of trouble.

The lawyers in our firm are focused on helping people with disability policies and ERISA claims. We want to give you the edge in understanding your policy. Today, we want to help you understand what the term “pre-disability earnings” means in your disability policy. Remember our ERISA attorneys and long-term disability lawyers are here to help if you run into problems. Contact us at the first sign of trouble with your disability claim. Whether you or your client needs advice before applying or appealing for ERISA benefits such as long-term disability, short-term disability, life insurance, pension, or retirement, contact an experienced ERISA disability attorney at The Martin Law Group at 800-284-9309.