Long-Term Disability And Unemployment

Wondering if you can apply for both long-term disability and unemployment benefits at the same time? It’s a common question many face when dealing with sudden health issues and job loss. It’s possible, but it comes with specific rules and limitations. In this post, we will discuss how it works when you file for long-term disability and unemployment benefits at the same time.

Can I Apply for Long-Term Disability and Unemployment Benefits?

The simple answer is yes, you can apply to receive unemployment and disability benefits. If you are currently receiving unemployment and you have an active disability insurance policy, you can still file a claim. However, the two programs have different goals. Unemployment benefits are for people who are ready, willing, and able to work but have lost their job through no fault of their own, but disability benefits are for people who cannot work because of an illness or injury. Because of the different eligibility requirements, it’s unlikely that you will be eligible for both benefits simultaneously. After you file for disability, you will need to notify the Department of Labor that you can no longer work.

Note: There is an exception to this rule. If you are receiving partial benefits for long-term disability, you may qualify for unemployment and disability under the pretext that you are only partially disabled.

Problems With Applying for Both Unemployment and Disability Benefits

A couple of problems can arise from you applying for unemployment benefits and disability benefits. The first problem is your disability insurance provider may use your unemployment benefits claim against you. If you are receiving unemployment benefits, you are essentially stating that you are ready, willing, and able to work. If that is the case, you don’t need long-term disability benefits. Likewise, your state unemployment agency may assume that you are dishonest about your ability to work because you have applied for long-term disability benefits. This problem could undermine your credibility and jeopardize both your claims.

The second problem is the offsets. When you receive long-term disability benefits from a private insurance company, they have the legal right to use offsets when issuing your monthly payments. Offsets are “other income from other sources,” such as Social Security Disability benefits, third-party settlements, and unemployment benefits. An example of this would be if you are eligible to receive $1,000 a month for long-term disability. You are currently receiving $120 per week through unemployment benefits. Since you now receive an estimated $480 per month in unemployment, your check for long-term disability will only be $520 instead of $1,000.

Consult A Disability Lawyer to Get Help with Your Claim

With so many variables involved in getting approved for a disability, the best thing you could do is consult with an experienced long-term disability lawyer. Most do not get paid unless you do and they know how to navigate the disability claims process. If your claim has been wrongfully denied, the Ortiz Law Firm offers a free consultation with no obligation to use our firm. Call (888) 321-8131 and let us help you get the disability benefits you deserve.