{2:50 minutes to read} Can I work and still get long-term disability benefits?
Under certain circumstances, the answer is yes, but everything depends on your policy. Occupation is almost always defined in your policy and in individual policies, your occupation is typically defined as the material and substantial duties of the occupation you were engaged in at the time you became disabled.
What is the definition of occupation in your policy? Do you have an own occupation disability benefit?
Assuming that you have a pure own occupation clause in your policy stating that the insurance company will pay you if you are unable to perform the duties of your former occupation, then a complete change in your occupational duties should allow you to work and still receive full benefits.
For example: You’re a surgeon, and your occupation is performing surgery. The scope of your work involves evaluating patients as candidates for surgery, performing surgery, and following-up with them to assess the surgery’s outcome. With own occupation disability benefits, if you become unable to perform surgery, but can perform a non-surgical clinical practice, you should be able to collect benefits because you are no longer performing surgery. Meanwhile, you can work as a non-surgical doctor or hospital administrator, even if your income is more than what you earned in your prior surgical practice.
If your policy doesn’t have an own occupation benefit, then eligibility may depend on whether you have a loss of income, meaning you are working but earning less money than you were in your former occupation. The very definition of residual or partial disability contemplates the idea of you continuing to work in your occupation on a reduced basis, as opposed to completely changing occupations.
In other words, if you are earning less money performing some of your previous occupational duties, you should qualify for partial disability benefit.
Before choosing to continue working, however, I highly recommend that you consult with a qualified lawyer to analyze your prior occupational duties, your current occupational duties, and your long-term disability policy. Most of these policies don’t require that you work in another occupation, only that you’re unable to work in your former occupation. If those duties substantially overlap, there may be a problem.
While considering your options, think about the timing of what you’re doing, because that can also affect your claim. If your disability benefit is in jeopardy in any way at all, that is not the best time for you to decide to go out and work in another job, intending to get both sides of the coin. Beginning a new job is a personal choice, but you need to have appropriate advice and enough information to make an informed decision.
How does your long-term disability policy define “disabled”?
Evan S. Schwartz
Founder of Schwartz, Conroy & Hack
800-745-1755
ESS@schwartzlawpc.com