If your employer goes out of business, your eligibility for Long Term Disability (LTD) benefits depends on the terms outlined in your insurance policy.  Here are several factors to keep in mind:

Employer-Sponsored LTD Insurance: If your employer offered you LTD insurance through a group plan and then ceases operations, this policy may be impacted. However, the policy might remain active with the insurance provider, even if your employer is no longer functioning.

Policy Terms: Examine your LTD policy to understand its specific provisions. Some insurance policies are funded by the employer, while others are paid for by the employee. If you are responsible for the payments on your LTD coverage, it may be easier to retain your benefits. If your employer managed the payments, you may need to determine whether your coverage continues after their shutdown or if there are options for continuation.

Employment Status: If you are still considered an employee (even if the company is closed or inactive), your benefits may continue. However, if you are no longer regarded as technically employed, complications could arise depending on the terms of your policy.

Self-Paid LTD Insurance: If you secured individual LTD insurance or continued to pay for the coverage after departing from the company, that insurance might still be valid.

Call or text 800-562-9830 or complete a Free Case Evaluation form

State or Federal Regulations: Some regions have laws that protect individuals’ benefits if their employer goes out of business. For instance, there may be provisions for maintaining coverage if you qualify for the continuation of health benefits or if your policy gets transferred to a different provider.

To obtain clear answers, review the policy documentation for clauses that pertain to your situation, or contact the insurance company to confirm the specifics.

A Long Term Disability Attorney Can Help You

For a free legal consultation, call 800-562-9830

Insurance companies often prioritize profits over your needs for support and benefits. Securing Long Term disability (LTD) benefits after losing your job can be stressful and overwhelming. At Marc Whitehead and Associates, our experienced Long Term Disability Lawyers in Houston, Texas, focus exclusively on assisting individuals with disabilities. If you’re facing denied benefits or dealing with an uncooperative insurance company, please contact us for a free consultation. We are here to help you get the benefits you deserve.