Michigan workers’ comp lawyer explains how a settlement can be used to avoid offsets with other disability benefits such as LTD and SSDI.
Our law firm represents Michigan employees who are hurt on-the-job. We help them obtain workman’s compensation benefits and protect their legal rights. Unfortunately, many of these individuals are not able to return to gainful employment. A cash settlement helps them get back on their feet, but it does not always provide enough money for a lifetime. Clients often ask us if they can get disability after a workers’ comp settlement in Michigan. The short answer is yes, but there are different rules to follow and there could be significant offsets. Here is some information about long-term disability benefits and Social Security disability benefits that everyone should know.
Michigan workers’ comp Law
Michigan law protects employees’ hurt at work. It covers all reasonable and necessary medical treatment. It also pays lost wages equal to 80% of a person’s after-tax average weekly wage. These benefits continue for as long as a person needs medical care or is disabled from employment.
Lump Sum Cash Payout
Many of our clients want to trade workman’s compensation benefits for a lump sum cash payout. This allows them to use money for any purpose they desire. We see clients find a new job, start a business, pay off debt, or just retire. The amount awarded will depend upon future medical needs and length of time a person will be disabled.
Can I get long-term disability benefits after a workers’ comp settlement?
Yes, you can get long-term disability (LTD) after a workers’ comp settlement in Michigan. These LTD policies are typically offered through an employer and were paid out of payroll. LTD typically pays around 60% of an employee’s salary. Many of these insurance policies include language that defines workers’ comp as “other income” and will offset payments and/or settlements.
Review the Summary Plan Description that explains the LTD insurance policy.
A disabled employee who wins a Michigan workers’ comp settlement does not automatically forfeit a claim for long term disability benefits. However, there is usually language in the policy that allows for an offset to occur. It is a good idea to ask for the Summary Plan description as this will usually tell you how other income impacts payment. It is possible to structure a workers’ comp settlement so that it has minimal impact on LTD benefits. We recommend speaking with an experienced attorney who can ensure maximum recovery from all possible sources of income.
Can I get Social Security disability benefits after a workers’ comp settlement?
Yes, you can get social security disability benefits (SSDI) after a workers’ comp settlement in Michigan. Individuals who settle a workers’ comp claim do not forfeit their legal rights to SSDI. There will be an offset if combined benefits exceed 80% of a person’s average current earnings before disability began. An experienced lawyer can allocate a workers’ comp settlement over a person’s lifetime and minimize any potential SSDI offset. This means a person can get both a workers’ comp settlement and SSDI benefits with little penalty.
Injured while on the job in Michigan? Contact our lawyers for a free consultation!
If you are injured on the job in Michigan and are wondering if you can still collect disability benefits after a workers’ comp settlement call now at (844) 951-2827 or fill out our contact form for a free consultation with an experienced lawyer. There is absolutely no cost or obligation. We’re here for you.
For more than 40 years, our lawyers have been helping people like you who have suffered from on-the-job injuries in Michigan. We understand the physical, emotional, and psychological hardships you are experiencing from your workplace accident. We also have the skill, experience, and know-how to protect you and get you the best possible payout amount for your case.
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.
Remember, every workers’ comp claim is different and must be negotiated on its own merits. Do not accept any payout amount without fully understanding your legal rights.
Michigan Workers’ Comp Lawyers law firm has consistently secured the largest settlements in the state and is the best choice for your case. We never charge a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 40 years. Call (855) 221-2667 for a free consultation today.
