What Happens to Long Term Disability if You Lose Your Job?
The loss of a job can be a devastating experience, and it is especially concerning if you are enrolled in a long-term disability insurance plan. A long-term disability can be tricky to navigate when you lose your job, but there are a few important things to keep in mind.
Is Your Plan Portable?
One of the best ways to protect your long-term disability benefits is to make sure that your plan is portable. This means that if you switch jobs, the coverage will go with you. Make sure to read the fine print of the plan to see if it is portable.
Can You Continue the Benefits?
If your long-term disability plan is portable, you will be able to keep the policy while you search for new employment. However, there may be rules that require you to remember to pay the premiums in order to keep the coverage.
What if You Cannot Continue the Benefits?
Unfortunately, if your plan is not portable, or if you cannot afford to continue the premiums, you may be unable to keep the coverage. In this case, it is important to keep in mind that there are other options for long-term disability coverage, such as Social Security Disability Insurance (SSDI).
Alternate Sources of Long-Term Disability
If you are unable to keep your long-term disability plan when you lose your job, you may be able to receive benefits from other sources:
- SSDI – Social Security Disability Insurance pays benefits to people who cannot work due to a medically-determinable physical or mental impairment.
- Employer-sponsored long-term disability – Many employers offer their own long-term disability plan, which you may be able to continue if you leave the job.
- State-run long-term disability programs – Some states offer their own programs that can provide benefits to disabled individuals.
It is important to note that, regardless of the type of long-term disability coverage you have, you may have to prove your disability in order to receive benefits.
Losing your job can be a difficult experience, and it can be even more challenging if you are enrolled in a long-term disability plan. Fortunately, if the plan is portable, you may be able to keep the coverage. Additionally, if you cannot keep the policy, there are other sources of long-term disability coverage that you may be eligible for, such as Social Security Disability Insurance and employer-sponsored or state-run long-term programs.