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Can I Give up My Job Whereas on Lengthy Time period Incapacity?


Many long run incapacity recipients stay “employed” with their employer, maybe listed as an “inactive worker”. However let’s say there has not been a proper separation – both by resignation or termination. Can one “give up” the job whereas receiving long run incapacity (LTD) advantages?

Sure, you can give up your job whereas on LTD advantages, however it’s vital to know the potential penalties earlier than you do. Whether or not it’s a sensible resolution relies on your particular scenario and the phrases of your incapacity coverage.

Components to Think about Earlier than You Give up

Listed here are some key issues to think about:

1. Your Eligibility for Ongoing LTD Advantages

Usually, quitting your job doesn’t mechanically cease your LTD advantages. If you happen to’re already accepted and receiving advantages, they normally proceed so long as you continue to meet the coverage’s definition of “disabled.” Nevertheless, some insurance policies require that you just preserve an employment relationship along with your employer, so it’s vital to verify your plan paperwork or converse with an legal professional earlier than you give up.

2. Impression on Well being Insurance coverage and Different Advantages

In case your employer gives your medical insurance and also you give up, you might lose that protection. It’s possible you’ll be eligible for COBRA, or you might want to search out personal insurance coverage. This may be an vital consideration in the event you’re coping with ongoing medical points.

3. Future Employment and Vocational Rehabilitation

Some LTD insurance policies embody rehabilitation or return-to-work applications. Quitting your job might have an effect on your participation in these applications or how the insurer views your potential for future employment. If the insurer believes you’re not cooperating with return-to-work efforts, it could use this as a cause to overview and even terminate your advantages.

4. Is There a Separation Settlement or Severance Settlement?

Many employers require a separation settlement or severance settlement as a situation of separation. If there’s a separation/severance settlement, one ought to rigorously overview the phrases and situations of such settlement to make sure that the claimant just isn’t giving up their LTD declare as a situation for receiving the severance funds.

5. Employer-Sponsored LTD vs. Non-public LTD

In case your protection is thru your employer (group LTD), leaving your job usually gained’t have an effect on present advantages in the event you’re already receiving them. However in the event you haven’t been accepted or are within the appeals course of, quitting might complicate your declare. Non-public LTD insurance policies, alternatively, normally aren’t affected by your employment standing when you’re accepted.

RELATED POSTVariations Between Group and Particular person Incapacity Insurance coverage

The underside line is that you just can give up your job whereas receiving long-term incapacity advantages, however it’s not a call to be made frivolously. Relying in your particular LTD coverage, your termination might have an effect on your advantages, well being care protection, or your insurer’s evaluation of your continued eligibility. At all times take the time to overview the phrases of your plan and take into account looking for authorized recommendation in the event you’re uncertain.

For detailed steering on strategy resignation attributable to incapacity, together with talk along with your employer, learn our article on resigning attributable to a incapacity.

Schedule a Free Case Analysis At this time

On the Ortiz Legislation Agency, we perceive how overwhelming it may be to navigate a long-term incapacity declare—particularly whenever you’re additionally attempting to make main life selections like whether or not to depart your job. Led by legal professional Nick Ortiz, our agency focuses solely on incapacity regulation, serving to folks throughout the nation safe the advantages they’re entitled to.

We’ve dealt with hundreds of appeals and lawsuits involving group (ERISA) and particular person incapacity insurance coverage. If you happen to’re coping with a denied declare, we provide free case evaluations, and there’s no obligation to maneuver ahead until it’s the precise match for you. If you happen to need assistance interesting a denial, contact the Ortiz Legislation Agency in the present day to talk with somebody who understands what you’re going by means of and is aware of assist.



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