Should I Stop Working if I Need to Go on Long-Term Disability?

Navigating the complexities of long-term disability (LTD) can be daunting, especially if you’re considering stopping work. In Canada, the decision to transition to LTD benefits from employment can have an impact on your financial situation, emotional well-being, and career. As a result, it’s important to understand how your employment may impact your long-term disability benefits and what options are available to you.

At Preszler Injury Lawyers, our dedicated long-term disability lawyers have years of experience handling LTD claims for our clients across Canada. Whether you are considering applying for LTD benefits, are in the midst of the claims process, or your benefits have been denied, we are here to help. With offices located throughout Canada, we are uniquely positioned to help you with your LTD claim, no matter where you are located. To schedule a FREE consultation with our disability lawyers today, contact us online or call us at 1-844-791-8202. 

Should You Still Work While Receiving Long-Term Disability Benefits?

When you are dealing with an injury, illness, or disability that is hindering your ability to work, you may have the option to receive long-term disability benefits in place of your regular income. Stopping work is often the smartest decision for your long-term health and well-being. Your disability benefits are there to provide you with financial support until you can return to work. However, depending on your health or financial status, you may be wondering whether it makes sense to continue your employment when you want to apply for LTD benefits.

If you are thinking about ending your employment, these are a few things you may want to take into consideration to help you make an informed decision about your future:

• The Severity of Your Condition. If your illness or injury significantly limits your ability to perform daily work tasks or puts your health at further risk, stopping work might be necessary.
• Advice from Healthcare Professionals: Consult with your doctor or specialist about whether continuing work is realistic for your condition.
• Job Flexibility: Evaluate whether your current job can be adapted to suit your limitations.
• Long-Term Outlook: If your doctor anticipates a full recovery after a certain period, temporary cessation of work or short-term disability benefits may be all that’s needed.
• Financial Considerations: Ensure you understand the percentage of your former income that LTD will cover and whether you have other financial resources to bridge any gaps left.

In Canada, you can receive LTD benefits through an employer-sponsored insurance plan or an individual insurance policy. Normally, LTD benefits come with specific eligibility criteria depending on the province you live in. The benefits you receive through your policy may be affected, altered, or denied depending on your work or employment status. For example:

• If you decide to keep working full-time, your benefits may be in danger. Your insurer may consider your continuance or return to work as evidence that you are not disabled and end your claim. This is especially true if the wages you earn after returning to work are the same as or close to what you were making before becoming disabled. The specific terms of your policy will outline the amount of work you can perform while continuing to receive benefits.
• If you decide to keep working part-time, your disability benefits may be reduced, or you may lose them altogether. While you may still be eligible to receive partial LTD benefits as a part-time worker, reducing your hours due to your disability before applying for benefits can significantly impact the amount you’re eligible for. This is because insurance companies examine the average hours you work over a certain period to determine the number of hours you are eligible to claim. Alternatively, certain insurance policies may deem individuals ineligible for LTD benefits once their weekly or monthly working hours drop below a certain point.

Your LTD benefits are often closely tied to your ability to perform your job. If you would like to continue working, you should be aware that your eligibility for LTD may be affected.

Types of LTD Policies and How They May Affect Your Ability to Work

It is sometimes possible to continue working while receiving LTD benefits. However, the amount you are allowed to work will vary depending on your insurance policy. In Canada, there are distinct types of LTD policies that treat employment differently. These policies include:

• ‘Own Occupation’ Policies: Own occupation policies define a claimant’s disability by their inability to perform the essential duties of the job they had before the onset of their disability. If your previous job involved long periods of standing or walking, and your disability has impacted your ability to perform these duties, you will be considered disabled under the terms of your policy. If you can work at a different job that does NOT involve the duties of your former occupation, such as a desk job, you may still be considered disabled and entitled to LTD benefits while working the other position. However, there will still likely be limits to the amount you are allowed to work or earn while receiving your benefits.
• ‘Any Occupation’ Policies: Any occupation LTD policies provide disability benefits for people who cannot work in any If you resume employment of any kind, your disability benefits may cease as you will no longer be considered disabled. Again, whether your LTD coverage fully stops may depend on the amount of hours you work or the income you earn at your job.

In some cases, policies will allow partial benefits for beneficiaries working part-time. Navigating whether you can or should continue working can be complicated. It is always advisable that you speak with an LTD lawyer when reviewing your policy to ensure you continue to receive the benefits you are entitled to.

Do You Have Questions About Working While Collecting LTD Benefits? Consult With Our Long-Term Disability Lawyers Today

The decision to stop working when going on long-term disability in Canada is not a simple one, and it depends on multiple factors. These might include the nature of your illness or injury, your unique LTD policy, and your financial situation. While many LTD policies have tight restrictions when it comes to working while receiving benefits, some may allow for part-time employment. Before making any decisions, it’s crucial to review your LTD policy with an experienced disability lawyer to ensure your eligibility won’t change.

At Preszler Injury Lawyers, our long-term disability lawyers are dedicated to helping you pursue the benefits you deserve. Our team can review your policy thoroughly, communicate with your insurance provider, and appeal any claim denials if necessary. For a FREE consultation with our disability lawyers, contact us online or call 1-844-791-8202 today.