How Working Can Legally Affect Long-Term Disability Benefits
As their medical condition improves, a person who has been receiving long-term disability benefits may want to consider going back to work. This could complicate their ability to continue receiving their benefits, but it is not impossible to work while still receiving at least some benefits. Each policy will provide specific rules controlling this situation. However, the definition of a disability under the policy also may affect whether a recipient will continue to get benefits. Some policies operate under an “any occupation” definition of disability, while others operate under an “own occupation” definition of disability.
An “any occupation” definition of disability generally means that the disability prevents the policyholder from working in any occupation. (Often, this means any occupation for which the policyholder is suited by education, experience, and training.) An “own occupation” definition of disability generally means that the disability prevents the policyholder from performing the core duties of their pre-disability occupation. However, each policy will define these terms specifically.
Regardless of what a policy says, a disability insurance provider may argue that a policyholder is no longer disabled because they are trying to return to work. To reduce this risk, the policyholder may want to talk to their doctor about their remaining restrictions. Documenting them may help persuade the insurer that the disability still affects the policyholder’s ability to work. If the policy language is difficult to understand, the policyholder may want to ask an attorney for their interpretation to make sure that they are complying with its terms. An attorney also can represent them against an insurer if it improperly terminates their benefits.
Working Under the Any Occupation Definition of Disability
Someone with this type of policy may not be able to work while receiving benefits. Also, someone who was working while a hybrid policy used the only occupation definition may lose their benefits when the definition changes to any occupation if they continue working after that time.
The answer is not always clear-cut, though, and a policyholder should carefully review the definition of disability in the policy. Even if it is technically an any occupation definition, the policy may frame “any occupation” as any full-time occupation. In that case, the policyholder might be able to hold a part-time job without completely losing their benefits. Or the any occupation definition might not cover literally “any” occupation. The definition might be limited to occupations in which the policyholder could earn at least a certain percentage of their income before the onset of the disability. They could receive benefits while working at a job in which they earn a lesser amount.
Working Under the Own Occupation Definition of Disability
Sometimes a person with a disability may be able to change their field to work around the restrictions that the disability imposes. A person who used to work in a physically demanding job might be able to do more sedentary work. For example, a delivery driver might be able to work as an administrative assistant in an office. Under the own occupation definition of disability, they would still be considered disabled and eligible for benefits. Again, though, each policy is unique, and its specific language should be reviewed, possibly with the assistance of an attorney.
