Can You Work Part-Time on Long Term Disability?

If you’re on long term disability (LTD) benefits and wondering if you can work part-time at a new job without losing your financial support, based on the own occupation definition the response is not always a yes. The majority of individuals on LTD benefits want to work in some capacity but are afraid of losing their benefits, resulting in receiving fewer benefits in the process. The good news is that, with some exceptions, working part-time is something you can do while on LTD benefits, but it is dependent largely on your insurance policy terms.

The majority of LTD policies, which are a form of disability insurance, let benefits return to work on a part-time basis, but the funds you receive from it will be combined with your monthly disability benefit to determine whether or not you’re still qualified for full benefits. In case your total earnings, part time income and the LTD benefits, are higher than an percentage of your pre-disability income, your benefits may be reduced. Possessing a clear understanding of what is covered in your own occupation policy and a careful review of the conditions of your LTD benefits are very crucial to avoid any negative impact on your claim.

Long Term Disability Benefits and Employment Options

Long term disability benefits are designed to replace a portion of your income if you are unable to work due to illness or injury. However, many people are able to return to work in a limited capacity while still receiving these benefits. Working part time or performing modified duties may be allowed under certain conditions.

If you do return to work on LTD, you should be aware of how your working status will overlap with your benefits. Some LTD policies issue partial disability benefits if you are able to work part time, which typically will be calculated as a percentage of your pre-disability income. That means if you are earning wages, your LTD benefit may be tapered by a percentage of your work income. In addition, many policies contain rehabilitation incentives that are designed to encourage people to get back to work in a way that is supportive of their recovery.

Ensure that you go through the fine print of your policy to know the effect work will have on your monthly payment, as it can influence your overall benefits. Ensure that you seek to know about your insurance company’s policies and consult a personal injury lawyer for advice on your case.

Should You Apply for LTD Benefits If You Work Reduced Hours?

One of the most common scenarios is applying for long term disability benefits while working part time. If you can work part time due to your disability but your income from a new job is still not sufficient to meet all your required expenses, applying for LTD benefits can be a good option. However, there are certain important points you should consider before proceeding with your application.

First you must see if your policy allowed you to earn LTD benefits while working part time. The majority of policies allow partial disability benefits, but how much work you can do and earn is usually restricted. Working part time may still make you eligible for benefits, but you must consider carefully how your part time income will affect your overall health.

In some cases, decreased working hours will lead to a decreased monthly compensation, but this will be specified by the specific terms of your LTD policy. For example, if you are receiving an income level similar to your pre-disability earnings, your monthly disability benefit could be significantly decreased, or in some cases, you will lose benefits completely. Before applying for LTD while working part time, it is a good idea to read carefully the provisions of your insurance policy and consult with a long term disability attorney who can walk you through these nuances.

How Many Hours Can You Work on Disability?

The amount of hours you are able to work and receive LTD benefits varies based on the provisions of your policy. The majority of insurance policies will allow you to work part time, but your part time income plus your LTD benefits cannot exceed some predetermined levels.

It should be noted that earning excessive income or working excessive hours can cause your ability to receive benefits can be jeopardized if you exceed the limits. Insurance companies closely monitor your earnings, and exceeding the limit could jeopardize your claim.

Can You Work Part-Time and Receive Long Term Disability Benefits

Yes, you can work part time on LTD benefits, but there are limitations. As mentioned above, your long term disability policy will likely subtract from your monthly benefit the amount you earn through part time work. The insurance company will calculate whether your earnings, plus your monthly benefits, would put you over a percentage of your pre-disability wage.

If you are able to work part time, the key is understanding the terms of your LTD benefits and how your total wages impact your benefits.

How to Decide If You Should Work or Go on Long-Term Disability

Deciding whether to return to work or apply for LTD benefits can be a difficult decision, especially if you’re considering working reduced hours or part time. There are several factors, including vocational rehabilitation training, that should guide your decisions:

Health and Recovery:

The most important consideration is your health and ability to perform essential duties of your job.

Financial Needs:

If you need extra income but cannot work full time, applying for full disability benefits while working part time may held bridge the gap.

Impact of LTD Benefits:

Returning to work will reduce your LTD benefits, so you must weigh the pros and cons of returning to work.

LTD Benefits and Earning Capacity: What You Need to Know

LTD benefits are often based on your pre disability salary, and your part time income may reduce your benefits. Your ability to earn under your LTD policy is something you need to know. Certain policies pay partial disability benefits, which are determined based on the income you’re earning now and the level of serious injury-related disability you’re experiencing.

If your part time income and your disability benefits together exceed the amount that is allowed, you could receive less benefit or lose it. Understanding how your policy defines “disability” is vital, especially when considering total disability benefits, and how your current ability to earn is considered when making a decision.

Maximizing Your Long-Term Disability Benefits Without Losing Employment Rights

In order to maximize you LTD benefits while maintaining your right to work, you need to understand how partial disability benefits work. Most LTD policies include rehabilitation incentives and partial disability payments , which allow you to work without losing all your benefits. However, too many hours or too much working, especially if your wages earned exceed the policy limits, can result in reduced benefits.

Consult Our Long Term Disability Lawyer to Navigate the Process

Navigating the complexities of LTD benefits and disability claims, as well as returning to work can be challenging. A personal injury lawyer can counsel you regarding safeguarding your rights and making sure you are eligible for benefits. We stand ready here at Grillo Law Firm to assist you with the LTD process, read your policy’s terms, and obtain your rights. Contact us today for a free consultation regarding your case and receive the clear advice you deserve.