Can You Still Work While Receiving Long-Term Disability?
Working while on Long-Term Disability
It is possible to work another job while on long-term disability, but it may impact the benefits you receive. The amount of money you earn from the job could affect your disability payment, and your disability payment could be terminated entirely if you earn enough.
Generally, earning less than 20% of your pre-disability income will not affect your LTD benefits.
Conditions and Policies for Working While on LTD
Before taking on another job while receiving LTD benefits, it is important to understand the conditions and policies of your particular plan. Some plans may limit the amount of money you can earn from work while still receiving benefits, while others may require you to report any additional income.
It is crucial to review your LTD policy carefully and consult with your doctor or disability attorney.
Continuing to Receive Benefits while Working
If you are considering working while receiving LTD benefits, there are options to help ensure you can continue receiving your disability payment. One option is to work part-time or on a trial basis.
Are you on long-term disability and wondering work another job and wondering if you can work another job at the same time? Check out this YouTube video that explores the answer to that question!
Gain valuable insight and advice on the topic of long-term disability and employment by watching “Can I quit my job while on long-term disability?” on YouTube.
Understanding Long-Term Disability Benefits
Long-term disability benefits provide financial assistance to individuals who are unable to work for an extended period due to a disability. These benefits are typically offered through an employer or can be purchased privately.
LTD benefits are focused on providing financial support to help individuals maintain their quality of life while dealing with a long-term disability.
What Are Long-Term Disability Benefits?
Long-term disability benefits are typically available to individuals who are unable to perform their job duties for an extended period. Most LTD policies provide benefits that are equivalent to 40-70% of the individual’s income before the disability.
To be eligible for these benefits, most policies require that the individual be unable to work for at least 90 days.
If you’re earning less than 20% of your pre-disability income, your disability payment will likely be unaffected. On the other hand, wages of 80% or more of your pre-disability income could terminate your LTD benefits entirely.
Therefore, it’s important to investigate your policy’s terms thoroughly and determine if you need additional coverage.
Types of Long-Term Disability Policies
There are generally two types of long-term disability policies: “own occupation” and “any occupation” policies. An “own occupation” policy provides benefits if the individual is unable to perform the duties of their specific job, while an “any occupation” policy provides benefits only if the individual is unable to perform the duties of any job.
It’s important to understand which type of policy you have and how it will affect your benefits if you choose to work another job while on long-term disability.
If you decide to work while on long-term disability, your benefits will likely be reduced based on the amount of income you earn from the new job. However, depending on your policy’s terms, certain types of income – such as investment income – may not be counted towards your overall earnings.
Be sure to review your policy carefully to understand all of the requirements and limitations before accepting another job while receiving long-term disability benefits.
Can You Work Another Job While on Long-Term Disability?
If you are currently receiving long-term disability (LTD) benefits, you might be wondering whether you can work another job while still receiving your benefits. In this article, we will explore this issue and provide some clarity on whether you can work under different LTD policies.
Working Under an “Own Occupation” Policy
If you have an “own occupation” policy, you might be able to work another job while continuing to receive LTD benefits as long as it is not in your field of expertise. This means that you can perform part-time or sometimes full-time work as long as the new work is different from the one you got injured doing.
However, your earning cannot exceed 80% of your pre-disability income, or your disability payment will likely be affected. Therefore, it’s important to notify your insurer of any new work to avoid any possible penalty.
Working Under an “Any Occupation” Policy
If you have an “any occupation” policy, this means that you cannot work at all or else you will risk losing all of your LTD benefits. These policies are generally less flexible and do not allow policyholders to work while receiving disability payments.
Therefore, it is crucial to understand your policy’s conditions and policies before committing to any work while receiving LTD benefits.
What to Do Before Returning to Work
Can you work another job while on long-term disability? If you’re receiving long-term disability (LTD) benefits, but thinking about returning to work, there are several steps you should take to protect yourself.
Talk to a Lawyer
Firstly, talk to a lawyer. Before returning to work, it is vital to get in touch with a disability lawyer to ensure that you do not lose your benefits unintentionally.
The lawyer will guide you through the process and help you take necessary steps to keep your long-term disability benefits.
Find Out the Cap on Your Income
Next, check the limit on the income you can earn while still getting LTD benefits. If you’re earning less than 20% of your pre-disability income, then your disability payment will likely remain unaffected.
However, if your wages are 80% or more of your pre-disability income, your LTD benefits could terminate entirely. Therefore, it’s crucial to know your limit and keep your earnings within that cap.
Calculate Your Expenses
Calculate your monthly expenses and consider additional medical bills you may have to pay if you’re seriously sick or injured. Long term disability typically pays benefits equivalent to 40-70% of your income, but for longer periods.
To decide how much coverage you need, it’s crucial to understand your monthly expenses more clearly.
Understand the “Any Occupation” Policy
If you have an “any occupation” policy, you may lose your LTD benefits if you start earning another income. These policies are usually stringent, allowing anyone to work.
However, these LTD policies are generally more flexible in allowing policyholders to work than “any occupation” policies. If you’re on disability under an “own occupation” (“own occ”) policy, you can perform part-time or sometimes full-time work.
However, the new work must be different than the one you got injured doing.
Take Care of Yourself
Finally, take steps to take care of yourself as you return to work. Prepare yourself emotionally and protect your boundaries, but be flexible enough to cope with the requirements of a new work environment.
Engage in self-care activities to prevent stress and burnout.
Case Studies: Working While on Long-Term Disability
Long-term disability insurance is meant to provide a reasonable level of income while a person is unable to work due to an injury or illness. But what happens if someone wants or needs to work while receiving LTD benefits?
Let’s explore some case studies of individuals who continued to work while on LTD and how their benefits were affected:
Case Study 1
William was a marketing director for a large corporation when he suffered a back injury that left him unable to work for more than six months. He began receiving LTD benefits which provided him with 60% of his previous income.
After three months of being on LTD, William felt ready to ease back into work. He talked to his employer and they agreed to provide him with a part-time job that was different than his previous role as marketing director, and paid less than 20% of his pre-disability income.
William was able to continue receiving his LTD benefits while working part-time.
Case Study 2
Jennifer was a nurse who developed chronic fatigue syndrome and was unable to work for over a year. She began receiving LTD benefits which provided her with 50% of her previous income.
After a year, Jennifer began to feel like she could handle returning to work on a part-time basis. Her previous employer had a policy of not allowing employees who were receiving LTD benefits to return to work, so Jennifer decided to find a new job.
Jennifer found a part-time nursing job in a different field of medicine that was less physically demanding than her previous job. The job paid less than 20% of her pre-disability income.
Since Jennifer was earning less than 20% of her pre-disability income, her LTD benefits were not affected.
Case Study 3
Robert was a construction worker who suffered a serious injury at work that left him unable to work for over two years. He began receiving LTD benefits which provided him with 60% of his previous income.
After two years of being out of work, Robert decided he wanted to try to work part-time in a different field. He found a job as a customer service representative that paid less than 20% of his pre-disability income.
He talked to his LTD insurance provider before starting the new job and provided them with all the necessary details about his new work.
Robert was able to work part-time and continue receiving his LTD benefits since he was earning less than 20% of his pre-disability income.
As seen in these case studies, it is possible to work while receiving LTD benefits, but there are different rules for different policies. It is important to notify your insurance provider before starting a new job and to make sure that your new salary is within the limit that your policy allows.
Can you work another Job while on Long-term Disability?
While it is possible to work while receiving long-term disability benefits, there are certain regulations and policies you need to consider to avoid losing your benefits. Typically, if you earn less than 20% of your pre-disability income, your disability payment will not be affected.
However, wages of 80% or more of your pre-disability income could terminate your LTD benefits entirely. To be sure about your situation, consult with a lawyer and your LTD policy provider.
Own Occupation Policy
LTD policies have different regulations depending on the type of policy. Own Occupation policies are generally more flexible in allowing policyholders to work.
If you’re on disability under an own occupation policy, you can perform part-time, or sometimes full-time, work. However, the new work must be different from the one you got injured or became ill doing.
Preparing to Return to Work
Take steps to protect your boundaries and prepare yourself emotionally as you return to work.
