When there are disputes regarding the long-term disability insurance of an employee, the services of a lawyer are usually relied on. But how much does a long-term disability lawyer cost? What are the client’s options when one needs a long-term disability lawyer but is financially challenged?
What is long-term disability insurance?
Disability insurance works by substituting a percentage of the income of an insured employee after they get sick or have an accident. The employee is not able to work for a certain period.
There are two kinds of disability insurance: short-term disability and long-term disability insurance.
Whether someone is eligible for short-term or long-term disability insurance will depend on several factors:
- the employee’s recovery time
- amount of insurance premiums that the employee has already paid
- whether the appropriate leave days (sick, vacation, etc.) were already used up by the employee
- days or hours that the employee has worked in the company
- whether the illness or disability was contracted during work or not
- the kind of illness and disability covered by the insurance plan
- any other conditions as set in the insurance plan or contract
Disability insurance plans are offered by the employer through a government-run mandated insurance plan or through a private insurance company. Employers may even offer and operate insurance plans themselves. Group insurance plans may also be offered by the employees’ union in the company.
Whether the employer is required to enroll its employees under a disability insurance plan depends on the labor and employment laws of the country.
How much does a long-term disability lawyer cost?
Disagreements over the insurance benefits of an employee may arise in different situations. It is usually over the benefits coverage that the insured employee is entitled to. It may also be because of any other disputed conditions of the insurance plan or contract.
In this case, any party to the dispute (the employee, the employer, or the insurance company) may need to hire a long-term disability lawyer. But the question is, how much does a long-term disability lawyer cost? Can an employee who is already facing financial difficulties afford the costs of a long-term disability lawyer?
Terms of Payment
The client and their lawyer may agree on certain terms over lawyer’s fees and legal fees. In general, the costs of a long-term disability lawyer may depend on:
- the complexity of the case
- the expertise of the long-term disability lawyer
- general fees accepted as the standard in their city or province
Consultation Fees
A one-time consultation fee from a long-term disability lawyer may cost between C$50 and C$500. This will depend on the length of the consultation and any other documentation that the client may need from the lawyer such as an opinion letter.
Flat Rate
Lawyers’ fees are charged at flat rates. This will largely depend on the amount of work that is required.
For example, internal representation of the client or appeals may range from C$500 to C$15,000. Full legal representation, which may or may not include a retainer’s fee, may range from C$5,000 to C$100,000.
How much a long-term disability lawyer costs will depend on other factors. One that affects costs the most is the complexity of the client’s case.
Contingency Fees
When a client cannot afford the costs of a long-term disability lawyer, a contingency fee arrangement is an option. This will grant the lawyer a certain amount or percentage of the benefits that will be awarded to the client. However, contingency fees also have a condition – when the client receives nothing, the lawyer also gets zero.
In Canada, the costs of a long-term disability lawyer under a contingency fee plan ranges from 25% to 50% of the total award granted to the insured employee.
The client and the lawyer may also agree on a fixed rate of the lawyer’s costs based on the projected amount that may be awarded.
Aside from these factors, the costs of a long-term disability lawyer on a contingency agreement will also depend on the negotiation between the client and the lawyer. Once both parties agree to the percentage rate or specific amount, they must honor that agreement.
For more on contingency fees and how much a long-term disability lawyer costs, employees should consult with a lawyer in their province. For instance, those in Calgary may contact a Lexpert top-ranked long-term disability lawyer in Alberta.
Know more about the benefits and long-term disability laws in Alberta, their eligibilities, and how to claim such benefits.
Legal Fees
Aside from figuring out how much a long-term disability lawyer will cost, a client must also find out what the legal fees and terms of payment are.
The insured employee and their lawyer may also agree that it will be on a contingency basis. Here, the lawyer may advance the costs of legal fees such as filing fees or medical report fees. The client pays the lawyer back once they get their long-term disability benefits. They can also reimburse their lawyer once litigation is over and the losing party pays.
How much can you get from long-term disability in Canada?
Knowing how much a client will get from long-term disability insurance will help to compute how much a long-term disability lawyer will cost.
While every insurance plan is different, most of these will repay the insured employee with a percentage of the basic or normal salary, at the rate ranging from 60% to 70%.
The period that the insurance plan will provide the employee with long-term disability benefits will also depend upon the contract. Some may provide for a maximum number of years. Some may vary depending on the disability that the employee has suffered. Benefits may be provided for up to 2 years, and extensions will be based on the insurance plan or contract.
Want to know more on how much a long-term disability lawyer costs in Canada? Contact any of the best long-term disability lawyers in Canada as ranked by Lexpert.