Cheli v. Taylorville Community School District 3

**What Happened** An employee named Cheli was receiving disability benefits through an insurance policy provided by their employer, Taylorville Community School District. When Cheli turned 65, American Home Assurance Company (the insurer) stopped paying the disability benefits. Cheli sued, claiming this violated their contract and that the benefits should continue beyond age 65. **What the Court Decided** The court ruled in favor of the insurance company. The judges found that the insurance policy's language was clear and unambiguous—it stated that disability benefits must end when the employee reaches age 65, which the policy defined as the retirement age. A lower court had previously ruled in Cheli's favor, but this decision was reversed on appeal. **Why This Matters for Workers** This case highlights the importance of carefully reading disability insurance policies, especially regarding age limits on benefits. Many employer-provided disability policies automatically end benefits at age 65, treating this as retirement age regardless of whether the worker actually retires. Workers approaching 65 should review their disability coverage and consider whether they need additional protection if they plan to work past traditional retirement age.