Work injury lawyer explains how cash from a workers’ comp settlement in Michigan can be used to avoid offsets with other disability benefits.
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 and potential 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 Law
Workers’ comp 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 and/or is disabled from employment.
Lump 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. Individuals who settle their workman’s compensation claims cannot seek additional medical treatment or wage loss benefits after the fact.
Can I get long-term disability benefits after a workers comp settlement?
Yes, you can get long-term disability benefits after a workers’ comp settlement in Michigan. If an employee also has a claim under a long-term disability (LTD) insurance policy. These are typically offered through an employer and it’s a good option. 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.
Review the language in the policy regarding LTD
Something to note with association to long-term disability benefits after a workers’ comp settlement is that just because an individual collects a lump sum cash payout after winning a workman’s comp claim does not mean they necessarily forfeit a claim for LTD benefits. However, there is usually language in the policy that allows for an offset to occur. 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.
Can I get Social Security disability benefits after a workers’ comp settlement?
Yes, you can get social security disability benefits 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 earrings 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
To speak with an experienced attorney about your work injury claim in Michigan, call us now, 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 35 years and can help you better understand Michigan workman’s 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 35 years. Call (844) 316-8033 for a free consultation today.
Related information:
Lowball Insurance Settlement Offer From Workers’ Comp: Now What?
