Work injury lawyer explains the difference between long term disability vs workers’ comp and explains how you can get both at the same time.
We frequently get telephone calls and emails from people hurt on-the-job who are forced to make a claim for long term disability (LTD) insurance instead of workers’ compensation. It usually happens when there is some controversy about how the accident occurred or what the medical shows. It is an easy decision to accept LTD insurance when faced with the prospect of not having any income. But this is not always the best course of action for people hurt at work. Employers want people on LTD insurance because it costs them less money. Here is some information about workers’ comp vs long term disability that every disabled employee should know.
Long term disability vs workers’ comp
The difference between long term disability vs workers comp is that long term disability insurance pays lost wages if a person can’t work because of a medical condition or illness where workers’ comp insurance pays benefits (i.e. medical care, lost wages etc.) for being injured on the job.
More on workers’ compensation
Workers’ compensation is a type of insurance that employers are required to purchase under Michigan law. Premiums are paid 100% by the employer and it is a no-fault type of system. It pays lost wages, medical treatment, attendant care, home modifications, and vocational rehabilitation. Disputed claims are resolved through an administrative hearing with a state magistrate. Most disputed workers’ compensation claims are settled for a lump sum cash payment.
More on long term disability
Long term disability is a type of insurance that pays lost wages if a person cannot work because of a medical condition or illness. It is usually purchased through a group policy and premiums are taken out of employee paychecks. It is typically governed under federal law, and it can be extremely difficult to challenge a denial. The amount paid will usually be reduced if a disabled employee is later approved for Social Security disability benefits (SSDI).
When comparing workers’ comp vs long term disability insurance, workers’ compensation is superior because it is tax free money. It also pays for medical care without any copays or deductibles and is a lifetime benefit while LTD insurance might only last a short period.
Can you collect workers’ comp and long term disability?
In Michigan, it is common to collect both workers’ comp and long term disability at the same time. However, there will be offsets and you may trade dollar for dollar. Many LTD insurance policies have a minimum payment that is owed regardless. Choosing between long term disability vs workers’ comp in does not have to be a hard choice.
How to get both long term disability and workers’ compensation?
When it comes to long term disability vs workers’ comp, our job as lawyers is to maximize the amount of benefits that a disabled employee receives. Just because an employee is receiving long term disability does not mean they cannot file a second claim for workers’ compensation.
Long term disability must typically be paid back if a disabled employee later receives workers’ compensation. However, lump sum cash settlements from workers’ compensation can be allocated in a way that avoids significant payback.
We have been very successful in getting long term disability to continue payment with only a small offset. This allows a disabled employee to get both long term disability and workers’ compensation benefits.
Not all LTD insurance policies are the same and coordination with workers’ compensation can be extremely complicated. It is a good idea to have an experienced lawyer review individual circumstances before actions are taken. Call us with any questions regarding choosing workers’ comp vs long term disability. We offer free advice and never charge a fee unless additional money is obtained.
Can you get long term disability after a workers’ comp settlement?
Yes, it is possible to continue getting long term disability after a workers’ comp settlement. The amount paid under LTD will typically be reduced by whatever lump sum amount has been paid. A creative lawyer can allocate settlement proceeds to maximize what LTD must pay in the future.
Injured on the job? Call now, our attorneys can help!
If you were injured on the job and have questions about long term disability vs workers’ comp and need help with your claim, call now to speak with an experienced attorney, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 40 years. Our attorneys can help you better understand work comp laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 40 years. Call (844) 201-9497 for a free consultation today.
Related information:
Attendant Care Services Under Michigan Workers’ Compensation
