Many long run incapacity recipients stay “employed” with their employer, maybe listed as an “inactive worker”. However let’s say there has not been a proper separation – both by resignation or termination. Can one “stop” the job whereas receiving long run incapacity (LTD) advantages?
Sure, you can stop your job whereas on LTD advantages, however it’s vital to grasp the potential penalties earlier than you do. Whether or not it’s a smart choice will depend on your particular scenario and the phrases of your incapacity coverage.
Elements to Contemplate Earlier than You Stop
Listed below are some key issues to think about:
1. Your Eligibility for Ongoing LTD Advantages
Usually, quitting your job doesn’t routinely cease your LTD advantages. In the event you’re already accepted and receiving advantages, they normally proceed so long as you continue to meet the coverage’s definition of “disabled.” Nevertheless, some insurance policies require that you simply keep an employment relationship along with your employer, so it’s vital to test your plan paperwork or converse with an lawyer earlier than you stop.
2. Impression on Well being Insurance coverage and Different Advantages
In case your employer gives your medical health insurance and also you stop, you might lose that protection. You could be eligible for COBRA, or you might want to seek out personal insurance coverage. This may be an vital consideration in case you’re coping with ongoing medical points.
3. Future Employment and Vocational Rehabilitation
Some LTD insurance policies embody rehabilitation or return-to-work applications. Quitting your job might have an effect on your participation in these applications or how the insurer views your potential for future employment. If the insurer believes you’re not cooperating with return-to-work efforts, it could use this as a motive to overview and even terminate your advantages.
4. Is There a Separation Settlement or Severance Settlement?
Many employers require a separation settlement or severance settlement as a situation of separation. If there’s a separation/severance settlement, one ought to fastidiously overview the phrases and circumstances of such settlement to make sure that the claimant will not be giving up their LTD declare as a situation for receiving the severance funds.
5. Employer-Sponsored LTD vs. Personal LTD
In case your protection is thru your employer (group LTD), leaving your job typically gained’t have an effect on present advantages in case you’re already receiving them. However in case you haven’t been accepted or are within the appeals course of, quitting might complicate your declare. Personal LTD insurance policies, however, normally aren’t affected by your employment standing when you’re accepted.
RELATED POST: Variations Between Group and Particular person Incapacity Insurance coverage
The underside line is that you simply can stop your job whereas receiving long-term incapacity advantages, however it’s not a call to be made flippantly. Relying in your particular LTD coverage, your termination might have an effect on your advantages, well being care protection, or your insurer’s evaluation of your continued eligibility. At all times take the time to overview the phrases of your plan and think about searching for authorized recommendation in case you’re uncertain.
For detailed steerage on easy methods to strategy resignation because of incapacity, together with easy methods to talk along with your employer, learn our article on resigning because of a incapacity.
Schedule a Free Case Analysis Immediately
On the Ortiz Regulation Agency, we perceive how overwhelming it may be to navigate a long-term incapacity declare—particularly while you’re additionally making an attempt to make main life selections like whether or not to depart your job. Led by lawyer Nick Ortiz, our agency focuses completely on incapacity regulation, serving to individuals throughout the nation safe the advantages they’re entitled to.
We’ve dealt with 1000’s of appeals and lawsuits involving group (ERISA) and particular person incapacity insurance coverage. In the event you’re coping with a denied declare, we provide free case evaluations, and there’s no obligation to maneuver ahead except it’s the appropriate match for you. In the event you need assistance interesting a denial, contact the Ortiz Regulation Agency as we speak to talk with somebody who understands what you’re going by and is aware of easy methods to assist.
