Long Term Disability After Termination

Can you continue to get long term disability after termination from your job? How should you make a disability claim based on the policy of your former employer? Answers to these questions coming up!

If you were terminated from your job, you may still be entitled to long-term disability (LTD) benefits if you have an LTD policy. However, there are some instances in which your LTD benefits may be denied after termination. 

For example, if your LTD policy has a “pre-existing condition” clause, your benefits may be denied if your employer can prove that your disability was caused by a condition that you had before you purchased the policy. This article covers every aspect of LTD benefits and Termination issues due to disability. 

Long Term Disability After Termination

What Happens to My Long-Term Disability After I Lose My Job?

This is the most frequently asked query regarding long-term disability benefits and the answer is clearly a big No. 

If social security disability benefit payments are made by any company then they can not cease it even if you lose your job. Any company providing you with disability benefits insurance can not cease it. 

Generally, disability benefits are given till the age of 65 or 67. However,  you can not expect to have your job forever even when you are not capable of it. 

It is obvious that you will be terminated at some point. But this termination will not affect your disability benefits. You will get the benefits promised to you while joining the company or the firm you will work for.

Long Term Disability After Termination

How Can I Determine Whether I can make an LTD Claim Under My Ex Employer’s Policy?

If you are wondering whether you can make a Long Term Disability claim under your former employer’s policy,  you should know that there is no clear yes or no. It depends on a lot of factors whether you claim the benefits or not.

  • First, you need to check whether you had LTD coverage in your company policy. 
  • Secondly, you need to get a hold of a copy of the policy. 
  • Next, you need to provide medical documents and dates to prove that you became disabled while you were working. 
  • Lastly, you need to answer whether you got disabled after your job termination/notice period or before. If it has happened after the termination, you are not eligible for the LTD benefits.

If you have ticked all the above boxes, you can claim Long Term Disability on your old employer’s policy.

You might also like to read: Long Term Disability Vs Long Term Care

Can Your Benefits Be Terminated While on Long Term Disability?

The answer to this question is “Maybe”. 

Long Term Disability benefits can be terminated as per a change in the policy of the insurance company. If your disability no longer falls under the “definition of disability” given by the insurance company, then your claim for the LTD can be denied or can cease. This can happen under the below two conditions

Medical Review

From time to time, the insurance company will ask you to submit your most recent medical reports and can also send their own medical expert to check on your health and whether you still qualify as a disabled. 

The definition of disability often changes every 24 months and if your condition does not fall under it, then the company can cease your LTD benefits.

Long Term Disability After Termination

Vocational Review

In this case, the insurance companies can have a vocational specialist review whether you are capable of doing some other job or not. If the Vocational specialist qualifies you as being capable then the company will cease your LTD benefits. 

The specialist can also recommend jobs that you can find that are not apt for you. In this case, you need to find a good lawyer if you disagree with the company’s policy of stopping your benefits. 

You might also like to read: Your Quick Guide To Long Term Care Insurance

Can You Be Fired When You Are On Leave With Disability? 

If you are on an approved leave then your company can not fire you and if it does then have a claim on your termination. If you are on medical leave then you should not worry about losing your job. 

Protected leave under the Family and Medical Leave Act (FMLA), you can not be fired or demoted and if your position is filled then you will be given an equal job by the company once you return. 

Long Term Disability After Termination

Family And Medical Leave Act (FMLA)

Yes, you can be fired when you are on leave with a disability under the Family and Medical Leave Act (FMLA), but there are some exceptions. For example, if you are on leave for a qualifying reason, such as to care for a sick family member, your employer may not fire you.

Additionally, if you have a written agreement with your employer that states you will be protected from termination while on leave, your employer may not fire you. However, if you are on leave for a non-qualifying reason, such as vacation, your employer may terminate you. 

If you are receiving short-term disability benefits for a medical condition under which you took FMLA, then you can not be terminated.

Americans with Disability Act (ADA)

Americans with Disability act became a law in 1990 and is a civil rights act that protects an individual against discrimination due to his disability. This act provides equal opportunity to disabled people in employment, accommodation, and lifestyle. 

The Americans with Disabilities Act (ADA) prohibits discrimination against qualified individuals with disabilities in all aspects of employment, including job application procedures, hiring, firing, training, wages, and benefits. The employer is also expected to make reasonable accommodation for you so that you can do your job, as long as they do not undergo undue hardship in doing so. 

However, the ADA does not protect employees from being fired for other reasons, even if their disability is a factor in the decision.

Long Term Disability After Termination

State Employment Laws

The State Employment Law is a list of more than 180 federal laws that protect the interest of the labor class and provide them with rights and amenities in their workspace. It includes standards for wages and overtime payments. 

Federal and state laws both prohibit discrimination against employees with disabilities, and this includes protection from being fired. However, there are some exceptions to this rule. If your employer can prove that your disability is impacting your job performance or poses a safety risk to yourself or others, they may be able to legally terminate your employment. 

Additionally, if you are on disability leave for an extended period of time, your employer may be able to argue that you are no longer able to perform the essential functions of your job and terminate your employment for that reason.

You might also like to read: The Ultimate Guide To Long-term Care For Seniors

What To Do If You Are Wrongfully Terminated?

Wrongful termination is one which done on the wrong grounds such as

  • On the basis of race, caste, sex, religion, etc.
  • If the guidelines for termination provided by the company are violated
  • If the person is on LTD and termination is done without any legal process 

In order to know whether termination is wrongful, one needs to know what are the grounds for it. The employee must be well versed with his or her rights and should read the contract of the job before signing it. One must be aware of the company’s termination policy. 

In case of wrongful termination, you should claim your rights and fight against them. If your termination is made on wrong terms or without any prior notice, you should find a good lawyer who is very well versed in such cases and let him take your case forward. You should have all the necessary documents and 

Frequently Asked Questions

Does long-term disability continue after termination?

The answer is yes but only if you qualify as a disabled person as per the definition provided by the company. 

Is a social security disability check considered an income? 

The answer is No. Disability check falls in the category of unearned income which means money earned without working.

Does severance pay affect Long Term Disability Benefits?

The answer is a clear yes. Severance pay does affect your LTD benefits and offsets it. Long Term Disability and Termination issues are a legal matter and it is advisable to consult a legal expert. Through this article, we have tried to help you clear your doubts and we thank you for going through our work. 

Wrap Up

Clearly, you can continue to get long term disability benefits even after termination in most cases. You need to be aware of your rights as a former employee and make sure that you get the benefits that you are supposed to.

Thank you for reading the article, we hope we have covered all the aspects that you were searching for. If not, please write to us in the comments section below.