Understanding how long-term disability benefits and workers’ compensation work together in New Jersey can be tricky. It’s important to know the rules about these benefits if you’re unable to work because of a job-related injury or illness.
What are workers’ compensation and long-term disability?
Workers’ compensation provides medical care and replaces some of your lost wages if you get hurt or sick because of your job. Long-term disability (LTD) insurance, on the other hand, replaces part of your income if you can’t work due to a serious health problem that isn’t related to work. The main difference is what causes your inability to work—whether it’s related to your job or not.
Can you receive both benefits at once?
You can receive both long-term disability benefits and workers’ compensation. However, the amount of money you get from long-term disability might be reduced by the amount you receive from workers’ compensation. This is because your LTD insurance doesn’t allow you to make more money from benefits than you would earn from working, usually about 60% to 80% of your usual pay.
How do these benefits add up?
When you get both workers’ compensation and long-term disability, the total amount you get is adjusted. For instance, if your LTD insurance normally gives you $2,000 a month and you get $1,000 from workers’ compensation, your LTD insurer might reduce its payment to you by $1,000. So, you still get $2,000 total, but it comes from two different places.
Why do benefits need to be coordinated?
Coordinating benefits ensures that you don’t get paid more than you should. This prevents situations where someone could make more money from being disabled than from working. Always check your LTD policy to see how your insurer will handle the adjustments when you also get workers’ compensation.
Managing your benefits
If you’re getting both workers’ compensation and long-term disability in New Jersey, it’s important to manage them carefully. Always tell your LTD insurer about the money you get from workers’ compensation to avoid any problems with overpayment. Also, keep good records of everything related to your claims with both workers’ compensation and LTD. This helps everything stay clear and ensures you get the right amount of money.
In short, it’s possible to get long-term disability benefits while you’re on workers’ compensation. Understanding and managing these adjustments will help you handle your benefits more easily.