Long Term Disability and Workers Compensation

Nov 13, 2012

Disability is a traumatic experience that causes significant disruption for both the plan sponsor and the plan member.  It is often an emotionally charged situation with a great degree of complexity and uncertainty for both employer and employee.  One common oversight during the disability process is how Long Term Disability (LTD) and Workers Compensation (WCB) interact.

If an employee is injured or sick as a result of a work related accident or illness, a claim is typically filed with WCB, however no LTD claim is typically submitted.  If the illness or injury is of a long term nature, there are many advantages in filing an LTD claim along with the WCB claim.  Here are a few reasons why:

  • Immediate savings:  If an LTD claim is approved premiums for Life Insurance, AD & D, and LTD are waived, removing the cost to the employer and employee.
  • Non disruption of payment:  If WCB terminates an individual’s claim but the employee is still disabled, LTD claim payments can begin immediately.  If the WCB claim is later reinstated, the insurance company has the right to recover their money, thereby preventing the employee from being double paid.
  • Late decline: If an LTD claim is submitted late (180 days in most contracts), that could trigger a declination due to late filing, causing further disruption of benefits, and initiating a complex appeal process.

These are just a few of the reasons why filing an LTD claim along with the WCB claim makes good sense.

 In the event of a disability claim, contact your Benefits Consultant to help you navigate this process.

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