A common question we have here at the Law Offices of David Zimmerman is if someone can get disability after settling their workers’ comp claim. The simple answer is yes, but there is potential for offsets with Long-Term Disability (LTD) or Social Security Disability Insurance (SSDI).

Lump-Sum Settlements

Instead of ongoing benefits, many of our clients choose a lump-sum settlement, so they can utilize the money for whatever they choose. This includes starting a business, paying off your debt, retiring, etc. The settlement is determined based on medical needs and expected disability.

Receiving Long-Term Disability After A Lump-Sum Settlement

While you can receive LTD benefits after a lump-sum settlement, most LTD policies will treat workers’ comp as other income, and reduce your LTD payments. We recommend you review the summary plan description for offset rules.  We also recommend speaking to an experienced lawyer here to produce a well-structured settlement where we can help to reduce or avoid these offsets.

Receiving Social Security Disability Insurance After A Lump-Sum Settlement

While you are still eligible for Social Security Disability Insurance (SSDI) after your lump-sum settlement, there are also possible reductions. If total benefits exceed 80% of your prior average income, SSDI can be reduced. Here at the Law Offices of David Zimmerman we emphasize trying to minimize these reductions and help spread your settlement value over time to minimize the offset and protect your benefits.

Injured At Work? Contact The Law Offices Of David Zimmerman For a Free Consultation

Request a Free Case Evaluation now at 1-866-464-2889. Clients Represented in Thousands of Workers’ Compensation Claims, Trials, Settlements in Metro Detroit, Michigan, Lansing, MI, Flint, MI, Saginaw, MI, Monroe, Michigan, Michigan’s Thumb and Port Huron areas. Every day we work with our clients as we go about taking care of their crucial legal issues. The trust we develop with our clients is the foundation of our relationships. At the Law Offices of David Zimmerman, our attorneys help our clients achieve their goals by offering premium legal services. We never stop working to continuously strengthen those relationships.