Workers’ comp vs long term disability: what’s the difference?

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Michigan lawyer explains the difference between workers’ comp vs long term disability and explains how you can get both at the same time.

Workers' comp vs long term disability

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.

Workers’ comp vs long term disability explained

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 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.

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.

How to get both long term disability and workers’ compensation?

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 action is taken. Call us with any questions regarding workers’ comp vs long term disability. We offer free advice and never charge a fee unless additional money is obtained.

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) 201-9497 for a free consultation today.

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.