Can You Work While on Long-Term Disability? A Complete Guide to LTD Benefits
Legally Reviewed and Edited by: Terry Cochran
Living with a disabling condition to the point where you are unable to work could be economically and psychologically demanding. Most people applying for long-term disability (LTD) question if they could return to working, possibly half-time or in some other capacity, and continue to maintain their benefits. So, can you work while on long-term disability?
This in-depth guide navigates the complexities of working with long-term disability and provides the necessary facts about retaining your benefits.
Understanding Long-Term Disability Work Rules
Long-term disability coverage gives you the funds you need if you cannot earn a living because you are in poor health or are injured. The terms for employment under LTD coverage are tedious and differ greatly based on your coverage and the insurer.
Most LTD coverage mandates the return to work for a beneficiary who can find a job suitable for their body and also good for their health. In either case, the return should be carried out properly so you don’t forfeit your coverage. Insurance companies typically offer various programs and arrangements for the beneficiary to try their working capacity and enjoy some economic protection.
The fundamental principle to grasp is how the definition of disability in your policy and the terms in your insurance contract influence how you are allowed to earn income while collecting benefits. The contract terms significantly affect your choices to return to the workforce and how much you can earn and continue to retain your benefits.
Can You Work Part-Time on Long-Term Disability?
Another frequent question many recipients ask concerns the issue of working part-time and collecting long-term disability benefits. They ask: “Can you work part-time on long-term disability? “The response to this question is typically affirmative, albeit with significant qualifications and limitations to be thoroughly evaluated.
Many LTD policies also provide partial disability, also referred to as residual disability, under which you are allowed to earn income at half-time and partial benefits. The terms are founded on the theory that some people are only qualified to undertake some jobs if they cannot return to the same job.
Under these, your benefit is typically reduced by applying the conventional mathematical formula, which depends on your income. For example, receiving 40% of your pre-disability income from partial employment could reduce your LTD benefit by the same rate. However, the calculations vary from company to company, and some businesses use different mechanisms to determine the reduction in the benefit.
It’s essential to consider the point when employment during long-term disability requires coordination between you and your insurance company. You are expected to report any income and jobs to prevent issues with your benefits. Part-time employment under most policies requires advance approval and notice to undertake the activity.
“Own Occupation” and “Any Occupation” Policies
The type of long-term disability coverage you carry influences your ability to earn a salary and, at the same time, collect benefits. The coverage exists in two general forms: “own occupation” and “any occupation” coverage.
Under an “own occupation” policy, you are deemed to be disabled if you are incapable of performing the physical tasks required in your specific job, perhaps despite the capacity to perform another profession. This type of policy provides easier work in another position and the continuance of the receipt of benefits.
For example, a surgeon who gets shakes in the hands could not perform surgeries anymore, yet could work in a school of medicine and continue receiving the benefits under an “own occupation” policy.
“Any occupation” policies refer to a broader definition of disability. The policies only count you among people with disabilities if you cannot perform the tasks associated with any job you are qualified to perform by education, experience, and training. The policies say working in any capacity could impact eligibility for the benefit.
Most policies provide an “own occupation” period (usually 24 months) to an “any occupation” standard. The transition point determines your job choices and their impact on benefits.
How Much You Can Earn and Still Qualify
Understanding earning limitations under long-term disability ensures you keep earning your benefits while working to return to the job. How much can you get on long-term disability? The income you are allowed to earn depends on the terms and conditions of your policy and the circumstances of your disability.
Most policies pay you the standard for a fraction of your pre-disability income. You could, for example, earn 60-80% of your pre-disability income and other benefits, and you could also forfeit all the benefits. Your benefits, at least, are typically reduced based on a formula based on how much you earn.
Insurance companies typically use any one of various standard mathematical formulas to determine benefit cuts:
The proportional reduction reduces the benefit by the proportion of your pre-disability income for which you are employed. The offset reduction reduces employment income from your benefit. The by-the-hour reduction reduces by only the number of hours you are used, and pay isn’t included.
It’s crucial to thoroughly read your policy’s detailed terms under the sections dealing with earning limitations and the calculation of benefits. Your policy could provide varying thresholds at various stages of disability, and some could provide you with the availability to earn additional income during the first return-to-work episodes.
Steps to Take Before Resumption
Can you work while on long-term disability? Returning to the workforce under long-term disability coverage requires proper stakeholder planning and coordination. The appropriate route is to continue protecting your benefits and transitioning smoothly.
First, consult your doctors to determine if you are ready to return to the workforce. Your doctors must prepare support to return to work and any necessary limitations and/or accommodations. This medical record report is to inform the employer and the company’s insurance.
Next, review your terms and conditions and call your insurer to let them know your intentions. Rehabilitation advisers are typically available in most providers who are in a position to advise you in formulating a return-to-work strategy in conformity to your terms and conditions.
Contact your old employer, if you are returning to your old job, to see what kind of possible accommodation and modified duties are available. The Americans with Disabilities Act mandates that businesses accommodate employees who are disabled, and this could involve modified schedules, equipment, and tasks.
Keep detailed and accurate records of your interactions with your healthcare providers, insurance companies, and employers. Record your working hours, income, and any limitations and/or symptoms you are having. This record-keeping could be essential if someone questions your ongoing eligibility for benefits.
Going Back to Work After Long-Term Disability
The transition from long-term disability back to the workforce needs to be closely controlled and typically consists of various stages. Insurance companies provide return-to-work programs to pay and support employees during the transition. Depending on your program, you need to understand what going back to work after long-term disability means.
Trial work periods are a standard component of LTD coverage, and you will get to see how you will be working before you give up your benefits. The trial period typically lasts 3-6 months. It provides a buffer if you cannot hold a job due to illness.
You, your healthcare providers, and the insurer should maintain regular communication during the trial period. Report any condition changes and problems with discharge responsibility in a timely fashion. Document any setbacks in detail and report any modifications to the return-to-work program.
Be prepared to the point you are ready to resume the job, only to fail the first attempt. Getting the proper treatment for the medical condition usually takes multiple tries. Your coverage could pay you if you must cease working again due to the same impairment.
What to Do if Your Insurance Claim Was Rejected
Sometimes, insurance companies will contest your ability to earn income when you receive the benefit and/or deny you future benefit pay based on how you earn.
First, review the letter denying the claim closely to examine why the company rejected the claim. Insurance providers are mandated to provide you with a detailed explanation of your rights to appeal. Be sure to consider the deadlines to appeal because failing to meet them on time could affect your rights forever.
Gather additional medical evidence to support your current impairment and limitations at the job. This could include detailed reporting by treating physicians, functional capacity examinations, and vocational evaluation. The objective is to support your activity at the job in conformity with your stated limitations and terms in the policy.
Consider consulting a paralysis attorney near you. The attorney deals in the law of disability benefits and employment law, and the attorney is familiar with the complex interactions between employment and disability benefits. The attorney will read through your policy, assess the merits of your case, and advise you through the process of appealing.
Speak to a Long-Term Disability Attorney in Michigan
Navigating the problems involved in collecting and working with long-term disability could be problematic. A qualified long-term disability attorney in Michigan could be helpful in numerous ways.
An experienced lawyer specializing in the area you are interested in, in this case, workers’ compensation, can read through your terms and advise you regarding your rights to engage in working activity and gain benefits.
If you’re finding it difficult to coexist with your insurer in the working activity area, you can provide evidence of compliance and vindicate your rights to the advantage through a lawyer. They are also in the position to represent you in appealing denied claims and in handling investigations by the insurer into working activity.
Legal representation kicks in most intensely if your insurer attempts to terminate your coverage through work. A good lawyer can offer and produce evidence to prove your working activity meets the terms and stipulations in the policy and, in no manner, disqualifies you from receiving the benefits.
Conclusion: Can You Work While on Long-Term Disability?
Working while on long-term disability benefits is possible, albeit under close examination of the policy’s terms and conditions, effective communication among all stakeholders, and accurate record-keeping regarding what you are doing. It’s also necessary to familiarize yourself with what you are and what is not covered under the terms and language in the particular in-force policy.
Remember that the purpose of long-term disability coverage is to offer economic protection. At the same time, you adapt to medical limitations and not to exclude you from working at all. Many people can sustainably co-mingle part-time employment and meet the long-term requirement for disability income if appropriate arrangements and assistance are implemented.
Whether you’re deciding to return to employment, are already working part-time, or are having issues with your insurer, getting expert advice could help protect your rights and benefits. A long-term disability attorney in Michigan is qualified for the job and could offer the skills required to navigate the legal process.
Seek Guidance for Your Long-Term Disability Benefits
If you or someone you love has questions about working while on long-term disability benefits, get the legal representation you need. Speak with our compassionate, knowledgeable Cochran, Kroll, & Associates, P.C. attorneys.
We can review your case, guide you through the complexities of LTD benefits, and help you understand your employment rights while receiving disability. Contact us today for a free, no-obligation consultation.
Our contingency fee basis means we only get paid if we win your case, so there is no financial risk to you to get started. Call our law firm today at 1-866-MICH-LAW and schedule your no-obligation, free case evaluation.
Disclaimer : The information provided is general and not for legal advice. The blogs are not intended to provide legal counsel and no attorney-client relationship is created nor intended.
