What Happens to Long-Term Disability If You Lose Your Job?

Losing your job is stressful, especially if you are dealing with a disability. If you’re relying on long-term disability (LTD) insurance, you might have questions. One of those could be, “What happens to long-term disability if you lose your job?” The good news is that losing your job does not necessarily mean losing your LTD benefits. Understanding your rights under your policy can help you secure the benefits you deserve.

How Long-Term Disability Works

LTD insurance provides financial support to individuals who cannot work due to a disabling condition. These benefits typically pay 50 to 60% of your pre-disability income, which can be critical in maintaining your financial stability. You can buy LTD policies individually or through an employer. Each policy has specific terms that dictate when and how the insurer pays benefits.

To qualify for LTD benefits, you must meet the policy’s definition of disabled. This typically involves proving that your condition prevents you from performing the essential duties of your occupation. You must also satisfy the waiting period before benefits begin. This can range from three to six months after the onset of your disability.

Can You Receive LTD Benefits After You Get Fired?

Even if you lose your job, you may still be eligible for LTD benefits, as your coverage is based on when your disability began—not when you applied for benefits. If your disability started while you were still employed and covered by the policy, you may continue to receive benefits despite job termination.

It’s similar to other types of insurance. For instance, if you cancel your car insurance but had an accident before the cancellation date, your insurance would still cover that incident. The same principle applies to LTD policies: if your disability started while your coverage was in effect, you remain eligible for benefits.

Common Issues When Applying for LTD After Job Loss

Applying for LTD benefits after losing your job can be complicated, and insurance companies may scrutinize your claim more closely. They might argue that you are no longer eligible because you are no longer an active employee. However, if your disability began while you were employed and covered by the policy, this argument is invalid. It is crucial to review your policy terms and gather all relevant documentation to prove your claim.

Additionally, insurance companies may try to categorize your condition as a pre-existing issue or argue that your disability is not severe enough to qualify for benefits. Working with an experienced disability attorney can help you push back against these tactics and secure your rightful benefits.

Legal Protections Against Unfair Termination

Federal and state laws offer some protection against wrongful termination due to disability. The Americans with Disabilities Act (ADA) requires employers with 15 or more employees to provide reasonable accommodations for workers with disabilities, such as modified work duties or flexible schedules. If your employer terminated you due to your disability, this could be a violation of the ADA.

Similarly, the Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid leave for medical reasons without risking their job. While FMLA does not guarantee LTD benefits, it protects your employment status during your leave period, giving you time to apply for LTD if your disability prevents you from returning to work.

Steps to Take If You Lose Your Job

If you lose your job and are worried about your LTD benefits, here are some key steps to take:

• Review Your Policy: Carefully examine the terms of your LTD policy to understand your rights and any limitations that may apply after job termination.
• Document Your Disability: Keep all medical records, doctor’s notes, and any other documentation proving your disability and its onset date. This evidence will be crucial when dealing with the insurance company.
• Consult an Attorney: A skilled disability lawyer can help you with applying for benefits, appealing denials, and fighting for your rights if your employer terminated you due to your disability.

How Capitan Law Can Help

Trying to secure LTD benefits after losing your job can be overwhelming. At Capitan Law, our skilled LTD benefits lawyers work exclusively with disabled individuals, never representing insurance companies. We understand the challenges you face and are here to fight for your best interests.

If you’re dealing with denied benefits or an uncooperative insurance company, contact us online or call us at (267) 419-7888 for a free consultation. Our experienced attorneys are ready to help you secure the benefits you deserve, no matter what challenges you’re facing.

Don’t let job loss deter you from getting the financial support you need. Capitan Law can advocate for you at every stage of the process.