If you’re receiving Long Term Disability (LTD) benefits, you may be wondering whether it’s possible—or wise—to take on a second job. Maybe you’d like to supplement your income, stay active, or simply stay engaged with the world around you. Before making a move, it’s important to understand how working, even part-time, could impact your benefits.
Here are the key considerations.
Check Your Policy Language
Every LTD insurance policy is different. Some policies allow you to work in a limited capacity and still receive benefits, while others are much more restrictive.
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Look for terms like “residual disability” or “partial disability” in your policy. These provisions often explain how much, if any, work you can do while still receiving benefits. Some policies allow you to work part-time and receive a reduced benefit amount based on your new earnings. Others may terminate your benefits altogether if you engage in any form of employment.
Understand the Definition of Disability
Your ability to work while receiving LTD benefits often depends on how your policy defines “disability.” Most policies use one of the following standards:
- Own Occupation: You are considered disabled if you are unable to perform the duties of your specific occupation. Under this standard, you may be able to work a different type of job without affecting your benefits—at least during the initial period of coverage.
- Any Occupation: You are considered disabled only if you cannot perform the duties of any job for which you are reasonably qualified. Under this stricter standard, working in any capacity may be used as evidence that you are no longer disabled.
Most LTD policies shift from an “own occupation” definition to an “any occupation” definition after 24 months of benefits.
Be Aware of Surveillance and Reporting Requirements
Insurance companies routinely monitor claimants for compliance. This may include requesting medical updates, reviewing social media activity, or even conducting video surveillance.
If you begin working, even on a limited basis, and fail to report it, the insurance company may use that omission to justify terminating your benefits or accusing you of fraud. It’s essential that you report any new employment to your insurer—even freelance, part-time, or informal work.
Understand How Income May Affect Benefit Amounts
Some LTD policies reduce your monthly benefit based on how much you earn from a second job. For example, if your policy provides $2,000 per month in benefits and you begin earning $800 per month from part-time work, the insurer might reduce your benefit to $1,200.
These formulas and thresholds should be detailed in your policy documents. If you’re unsure, consult a disability attorney to help you interpret your policy correctly.
Consider Your Health and Medical Restrictions
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If you’re receiving LTD benefits, it’s because you have medical conditions or limitations that prevent you from working full-time. Before taking on any new work, speak with your doctor. It’s important that any job you consider does not conflict with your diagnosed limitations or treatment plan. Insurers will likely request updated medical records and may consult your doctors to ensure your activities align with your reported disability.
Proceed with Caution
In summary, while it is sometimes possible to work a second job while receiving LTD benefits, the decision should not be taken lightly. Here are a few steps to take before making any changes:
- Review your LTD policy carefully
- Consult with your doctor
- Speak with an experienced disability attorney
- Disclose all work activity to your insurance provider
Still Have Questions?
Our office helps people not just with disability claims, but also with elder law, estate planning, Medicaid qualification, and long-term care planning. If you’re concerned about protecting your benefits, planning for the future, or qualifying for services as you age, we can help.
Call us today at 800-562-9830
Or contact us online: DisabilityDenials.com
