Case Study: Workers Comp and LTD benefits

Michigan lawyer illustrates how it is possible to get both workers comp and long-term disability at the same time.

Mr. R is a real person from Warren, MI who suffered a back injury at work.  His employer told him to apply for long-term disability instead of workers comp. The most likely reason was so the employer could save money on workers comp insurance premiums.

The problem with long-term disability was that it only paid $1,000 per month for 24 months and was not enough to support his family during his recovery.  He would also have to pay substantial out-of-pocket medical expenses that his health insurance would not cover.  Workers comp is also income tax free.

Mr. R contacted our office and it was clear that he should be receiving workers comp benefits.  We filed a workers comp case even though he had been receiving long-term disability for nearly a year.

Most long-term disability policies do not pay for work injuries and require reimbursement if workers comp is ever recovered.

Our goal is to maximize recovery for the injured worker

We were able to negotiate a workers comp settlement in the amount of $96,500. Mr. R was thrilled because this amount of money would help his family get back on their feet. The question became whether he could continue to receive long-term disability and would he have to pay any money back from his workers comp settlement.

We obtained a copy of the long-term disability policy. It turns out that workers comp was listed as a deductible source of income.  This means that for every dollar he received from workers comp, he would have to pay it back to long-term disability.  The long-term disability policy also provided that whatever time period the workers comp settlement was for would be accepted.

Michigan law allows a workers comp settlement to be allocated over a person’s lifetime. We were able to take the $96,500 settlement and allocate it at a rate of $119.02 per month. Mr. R still received the full workers comp settlement as a lump sum but it was allocated at a monthly rate over his lifetime.

The end result was that Mr. R did not have to pay any money back from his workers comp settlement and long-term disability was forced to continue paying benefits with only a small reduction of $119.02 per month.

Every workers compensation case is different

Find out how to increase your workers comp settlement. We offer free telephone advice and never charge a fee unless workers comp benefits are recovered for you.

Call  (855) 221-2667 to speak with one of our workers comp lawyers. We will fight to make sure that you get the largest recovery available under the law.

Alex Berman is the founder of the law firm. He’s been representing injured and disabled workers exclusively for more than 30 years. Alex has helped countless people obtain workers compensation benefits and never charges a fee to evaluate a case.

Related Information:

FAQs about workers compensation to help protect you

Workers compensation benefits denied or terminated

05/01/2011
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