Getting fired can lead to an endless series of complications. From regaining a foothold in the economy to fortifying financial accounts to reassessing spending and budgets, there is often a wealth of things to worry about after losing a job. When faced with unexpected job loss, it’s easy to lose ourselves in the financial uncertainties.
For disabled individuals, being terminated in the workforce can be all the more daunting. The potential impacts of job termination on disability insurance benefits can leave many disabled Americans to grapple with an uncertain fallout. It’s important for employed Americans to understand how job loss affects disability insurance benefits, including their ability to secure or maintain coverage through their disability insurer.
In this blog, we’ll review common conditions that can affect the continuation of disability benefits after job termination and review legal steps that employees can take if they find themselves facing unexpected job loss while receiving disability benefits. Keep reading to learn more about disability benefits continuation after employment termination.
Understanding Disability Insurance
Disability insurance is a type of coverage that provides income replacement to individuals who cannot work due to a disability. It serves as a safety net, ensuring financial stability during challenging times. Disability benefits can help cover essential expenses, such as medical bills, mortgage or rent payments, and other costs of everyday living.
Continuation of Disability Benefits After Job Loss
When it comes to job loss and disability benefits, the terms and conditions of your specific policy play a significant role. Here are some key factors to consider:
- Own Occupation vs. Any Occupation: Some disability insurance policies define disability based on your “own occupation,” meaning you cannot perform the duties of your specific job. Others may define disability as being unable to engage in “any occupation” that you are reasonably suited for based on your education, training, and experience. If your policy contains an “own occupation” provision, losing your job would not necessarily terminate your disability benefits as long as you remain unable to perform the duties of your former job.
- Changes in Income: In some cases, the amount of disability benefits you receive may be affected by changes in your income. If you find new employment but earn less than your pre-disability earnings, it's important to understand how this may impact your benefits. Your disability insurance policy may have provisions that allow for a partial benefit based on the difference between your pre-disability and post-job loss earnings.
- Rehabilitation Programs: Disability insurance policies may also include provisions related to rehabilitation or re-employment programs. These programs aim to support individuals returning to work or transitioning into new occupations. If you participate in such programs after a job loss, it’s essential to understand how they may impact your disability benefits.
3 Steps to Secure Continuation of Disability Benefits
To protect your rights and ensure the continuation of your disability benefits after a job loss, consider following these three essential steps:
- Secure qualified representation from an experienced disability insurance lawyer. If you encounter any challenges in understanding or securing continued disability benefits after a job loss, it is advisable to consult with a disability insurance lawyer. They can assess your situation, guide you through the process, and advocate for your rights if necessary.
- Review the specific terms under your policy. Thoroughly review your disability insurance policy, paying close attention to the definitions of disability, terms, and conditions that apply to job loss situations. Understanding the specific provisions will help you navigate your rights and responsibilities.
- Notify your disability insurer as soon as possible. Reach out to your insurer as soon as possible to inform them of the job loss. They can guide you through the steps and provide insight into your specific policy and relation to job termination. More importantly, your lawyer can review the legal processes with a practiced legal eye to ensure you’re treated fairly by the insurer and negotiate effectively on your behalf as needed.
Job loss can be an intimidating and uncertain time for anyone, but the stakes can feel significantly higher when the continuation of disability benefits hangs in the balance. By seeking sound counsel from a qualified attorney and taking the time to understand the legal intricacies of your disability insurance policy, you can work to protect your rights and restore your economic security.
Help from a Lawyer with Expertise in Disability Insurance
This law firm was built to be a disability insurance law firm. That focus means:
- All of our lawyers specialize in disability insurance claims.
- We have experience with every major disability insurance company.
- We have won important long-term disability lawsuits.
Our disability lawyers can help you with the following:
- Submitting a disability insurance claim;
- Appealing a long-term disability denial;
- Negotiating a lump-sum settlement; and/or
- Filing a lawsuit against your disability insurance company.
Hiring an experienced disability attorney is important. Because federal law applies to most disability insurance claims, our lawyers do not have to be located in your state.
Call (800) 969-0488 to request your free consultation with an experienced disability attorney. Pay no fees or costs unless you get paid.
