Understanding long-term disability (LTD) benefits is essential, especially if you face potential health challenges that prevent you from working. LTD benefits are designed to provide you with some income during such challenging times. Often, these benefits come as part of your employment package, and questions arise, particularly when severance pay is also on the table.
In such circumstances, due to health reasons or otherwise, if your employer offers you a severance package, a valid concern is how this could influence your disability benefits. In essence: Yes, severance can indeed impact your disability benefits.
What Exactly is a Severance Package?
Severance packages are compensation that some companies offer when they part ways with an employee. Think of it as a gesture of goodwill for your time and service. The amount varies based on company policy and your tenure. Importantly, not all companies offer severance, and there’s no legal mandate forcing them to. They often provide it to preemptively address any potential legal disputes.
Keep in mind: Severance packages can often be negotiated. Whether you’re discussing the amount, extended health coverage, or other terms, it’s worth raising the topic.
The Relationship Between Severance Pay and Disability Benefits
Claiming disability benefits after parting ways with an employer can be complex. If you had LTD coverage and your disability arose while employed, you’re typically still eligible for benefits.
However, if you’re currently receiving disability benefits and then decide to accept a severance package, there could be ramifications. Some severance agreements might contain terms that affect your future disability benefits. Even if not explicitly stated, the severance you receive might be factored into, and thereby reduce, your disability payments.
A crucial point to remember: Once you’ve signed the agreement, making changes is nearly impossible. Therefore, it’s vital to thoroughly review any documents. If things seem intricate or confusing, it would be wise to consult with a legal professional. We’re here to help you make the right decision!
How Tucker Disability Law Can Assist
Taking a severance package might compromise your ability to receive full disability benefits. Navigating the process of claiming these benefits can be daunting, but you’re not alone in this journey.
At Tucker Disability Law, we’re well-versed in this arena. We understand the intricacies of dealing with insurance companies and can guide you through the maze. We’re here to help you address all the complexities, allowing you to concentrate on your well-being.
Reach Out to Us for Support
Navigating this journey solo can be overwhelming. Whether you’re initiating a claim, appealing a denial, or preparing for a legal proceeding, our team has the expertise to support you. Contact us at 866-994-5399 for a complimentary discussion about your case. We’re here to help you make informed decisions. We have over 30+ years of fighting the insurance companies and have a 98% win rate.
Use the blue contact section NOW to call us, live chat with us, or message us. You can also message us using our confidential contact form.
At Tucker Disability Law we don’t settle for less. Neither should you.
