Long-term disability (LTD) benefits are designed to provide financial support to individuals who are unable to work due to a serious illness or injury by replacing a portion of the individual’s income. In Ontario, LTD benefits are often provided through employer-sponsored insurance plans, although they can also be purchased privately. Many individuals receiving LTD benefits wonder whether they can still be employed while continuing to receive these benefits.
The first and most crucial step in determining whether you can work while receiving LTD benefits is to review the specific terms and conditions of your insurance policy. Insurance policies vary significantly, and the rules governing active employment while on LTD will be outlined in your policy documentation. Some policies may allow for part-time or modified work, while others may have stricter limitations.
The type of work you are able to perform is another critical factor. Many policies differentiate between your “own occupation” and “any occupation”. Initially, LTD benefits may be paid if you are able to prove that you are unable to perform the duties of the employment you were working at the time the disability began. However, after a certain period (often two years), the definition of “disability” may change such that an insured must prove they cannot work for any employment for which they would otherwise be reasonably suited for (i.e. by education, training, or experience).
Some LTD policies include provisions for partial disability, which means you may be able to earn a certain amount of income without losing your benefits. Typically, there is a cap on the amount you can earn, which is often a percentage of your pre-disability earnings. Earning beyond this limit could reduce your benefits proportionally, or in some cases, lead to termination of benefits.
Furthermore, many insurance companies encourage participation in rehabilitation or return-to-work programs. These programs are designed to assist individuals with gradually transitioning back into the workforce, and participating in such programs may be a condition of continuing to receive benefits.
Ensure you carefully read through your LTD policy to understand specific provisions related to working on disability and keep an open line of communication with your insurance provider as to any changes in your health or employment status. As well, be sure to reach out to your regular healthcare provider, as they may be able to offer valuable insights into what type of work, if any, you can perform without compromising your health. If you have any questions or are uncertain about your rights and obligations under your LTD policy, consult a lawyer, like those at JEWELL RADIMISIS JORGE LL.P, who can provide you with the guidance you need to make informed decisions about your long-term disability benefits.