Will I Lose My Job/Do I Still Receive Benefits?

When you are the recipient of long-term disability (LTD) benefits, you are considered to be “actively employed” under the LTD policy.

While not carrying out the duties of your job, you are still considered to be an employee under the LTD policy. If your employer terminates you as a result of you being off work due to disability, you may be entitled to wrongful dismissal damages. The employer may take the position that you do not meet the test for disability benefits and attempt to terminate you for not returning to work but this is very risky on the part of the employer.

Whether you receive benefits or not depends on whether you are being paid LTD benefits. More often than not, it is the insurance carrier who makes the decision about your entitlement to LTD benefits. This may or may not be in conjunction with the employer. Some insurance carriers will employ third-party administrators to make the decision for them. If the insurance carrier/employer/third-party decision-maker denies you benefits, you will not be in receipt of benefits.

That does not mean you may not later receive benefits for that period if it is later determined that you were disabled under the policy for that time. Essentially, you will receive LTD benefits for as long as you meet the test for disability under the policy. Sometimes you have to commence an action to get a judge to agree with you or disagree with the insurance carrier, that you meet the test for disability under the policy.

The insurance carrier’s decision to deny you benefits can be litigated in court. Review your LTD policy for the definition of disability.

Call me to discuss whether you meet the requirements for LTD benefits.

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