For workers who are injured on the job and cannot continue to work, a workers’ compensation settlement may be a suitable alternative to receiving payouts on an ongoing basis. However, in some circumstances, disability may be an option instead of or in addition to workers’ compensation. In these cases, it is important that you know all of your rights so you can make informed decisions about your future. Read on to learn more about disability after a workers comp settlement and whether it is possible after a settlement in your case.
Can I Get Disability After A Workers Comp Settlement?
If you receive a workers’ compensation settlement and then become disabled after that point, you can apply for long-term disability benefits. However, you must inform your workers’ compensation carrier that you are applying for disability benefits. If you fail to do so, you may be committing fraud, which can lead to harsh penalties and fines in the future. If you have an existing workers’ compensation settlement, you can apply for a long-term disability claim within three years of accepting the settlement.
How To Receive Disability Benefits After A Workers’ Comp Settlement?
- If you are in a situation where you have received workers’ compensation and then become disabled, you can apply for long-term disability benefits. However, before you do so, read the below tips to see if it is possible to receive disability benefits after a workers comp settlement.
- You must be able to prove that your injuries are due to an accident that happened while working. You must not have worked since your last injury occurred. You must be able to prove that your injury prevents you from working at all.
- You must not be receiving workers’ compensation payments at the time that you apply for disability benefits from your state’s Social Security Administration office or from a third-party insurance company or agency. If you are receiving workers’ compensation payments during this time, do not apply for long-term disability until those payments stop or are reduced significantly in amount when the application is approved by the Social Security Administration (SSA).
- You must have been a U.S. citizen or legal U.S. resident at the time of your accident, but not have been eligible for Social Security benefits due to age, disability, or any other reason at the time of your last injury (unless you are currently receiving Social Security benefits).
- If you meet all of the above requirements, you can apply for long-term disability benefits from the SSA if your worker’s compensation settlement is approved by the SSA and paid by an employer that is required by law to pay workers’ compensation benefits to their employees in their state. If your settlement has been approved by an employer that is not required by law to pay workers’ compensation benefits in your state, then you can apply for long-term disability benefits from the SSA if you are able to prove that your injuries were caused by an accident that happened while working and that they prevented you from working at all afterward; however, you may still receive workers’ compensation benefits from that employer’s workers’ compensation insurance company.
- If you are applying for long-term disability benefits after settling a workers’ comp claim, it is important to understand how your workers’ comp settlement may affect your disability benefits. If your workers’ compensation settlement is more than $100,000, you will likely receive a proportionally lower amount in disability benefits. If your workers’ compensation settlement is less than $100,000, you may receive the same amount in disability benefits as well. In order to receive disability benefits, you will have to be approved for the Social Security Disability Insurance (SSDI) program.
- This is a program that provides financial support to individuals who cannot work due to a long-term disability. When applying for SSDI, you will be required to pass a medical evaluation. This medical evaluation will determine whether you qualify for the program. If you receive a workers’ compensation settlement, this medical evaluation may be more difficult to pass.
When Can I Get Both Workers’ Compensation And Disability?
- If you are disabled but do not qualify for SSDI, you may be able to apply for disability benefits from a third party. This is called an “alternative” benefit plan. However, this will only be available if your workers’ compensation settlement is less than $100,000. If your workers’ compensation settlement is more than $100,000, the alternative benefit plan will not be available to you.
- You may still be eligible for a contractually-mandated insurance plan that provides additional coverage in case of disability. This coverage is generally referred to as “comprehensive” or “total” disability insurance and can provide long-term financial support for individuals who are disabled due to an injury sustained while working.
- If your workers’ compensation settlement is more than $100,000, you will likely receive a smaller amount in disability benefits. This means that it is possible to get both workers’ compensation and disability benefits at the same time. However, if your workers’ compensation settlement is less than $100,000, you may receive the same amount of disability benefits as well.
- If your settlement is less than $100,000, you will likely be required to apply for short-term disability benefits while waiting for your workers’ compensation settlement to be approved. Once your workers’ compensation settlement has been approved, you will switch to long-term disability benefits. This means you will have received financial support for a shorter period of time than someone who applied for disability benefits without a workers’ compensation settlement. This may impact your ability to receive benefits in the future if your disability is ongoing.
Where You May Be Able To Get Disability After A Workers’ Compensation Settlement?
- The Social Security Administration (SSA) is a federal agency that provides disability insurance benefits to individuals who are unable to work due to a long-term disability. If you are an individual who has been awarded long-term disability benefits by the SSA, you may be able to receive SSDI benefits as well. To be eligible for SSDI, you must be under the age of 65 and have worked a certain amount of time in the past.
- If your workers’ compensation settlement is less than $100,000, you will likely receive the same amount in disability benefits as well. In order to receive SSDI, you must pass a medical evaluation. This medical evaluation will determine whether you qualify for the program. If your workers’ compensation claim is more than $100,000, it will likely prevent you from receiving SSDI benefits as well.
- If you have been awarded long-term disability benefits by the SSA, it means that you have been approved for SSDI benefits as well. If your disability is more than $100,000, it may prevent you from receiving both workers’ compensation and Social Security Disability Insurance (SSDI). For this reason, it’s important to discuss with a workers’ compensation attorney the possibility of receiving both workers’ compensation and Social Security Disability Insurance after a workers’ compensation settlement.
- If your workers’ compensation settlement is less than $100,000 and you become disabled after receiving it, you may be able to receive disability benefits even if you have already been approved for a workers’ compensation settlement. However, you must inform your workers’ compensation carrier first. If you wait until after receiving your workers’ compensation settlement to apply for disability benefits, you may be committing fraud. This is because you will be receiving two benefits for the same injury, which is against the law in many states.
- If you have been receiving workers’ compensation benefits while you wait to be approved for disability, you may be able to keep receiving workers’ compensation benefits even after you are approved for disability. In this case, you will receive benefits from both programs until you are able to return to work.
Final Words
If you have been injured and unable to work as a result, you may be eligible for disability benefits. If you receive a workers’ compensation settlement and are subsequently approved for disability, you can apply for disability benefits. However, you must inform your workers’ compensation carrier that you are applying for disability benefits. If you fail to do so, you may be committing fraud, which can lead to harsh penalties and fines in the future. If you have been injured and are unable to work, it is important to understand your rights.
