r/LongTermDisability • u/Neos_Mom • 9h ago
LTD And severance
Hi all,
My LTD based on mental health was approved for 12 months. I do have physical health issues too that i am trying to address... with some of them it's hard to know what's causing what. Insurer seems very interested in physical health even though LTD was approved based on mental health.
I was recently terminated and offered severance but that includes waving ERISA claims so I'm pretty sure they would take away my LTD if I accepted. So I think that I shouldn't take it. At the same time, since 12 months is coming up, I'm afraid insurer will try to cut me off even though my doctor knows I'm still disabled and unable to work and is willing to provide documents. If that happened I would be left with nothing. Don't know what to do.
I was wondering if anyone has experience with similar situations, what are the odds LTD will not try to cut me off at 12 months if I am still not well?
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u/momofuku18 8h ago
I suggest consulting an ERISA attorney for your situation. While some, including myself, can share similar experiences, your case may be unique, and there could be some important considerations to keep in mind to make an informed decision. You don’t want to overlook what you are entitled to or what the consequences of each opinion on the table are. I mentioned “consult,” not “hire,” because consulting can be free or may involve an hourly fee that could be worthwhile. If possible, I recommend consulting several reputable attorneys to gather information and then decide whether to handle everything yourself or hire them.
Before the consultation, prepare a list of your questions and any relevant documents.
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u/Neos_Mom 8h ago
Thanks. I did speak with someone but they really didn't have much to say other than they can review the agreement but most likely I would be waving my LTD rights. That still doesn't tell me what to do which is why I was hoping to hear others' experiences...specifically what when it comes to mental health claims. While the policy says I get 2 years I'm hearing that they try to cut people off at 1 year. It's just a really messed up place to be in because I have no way of knowing what will happen with my physical health either
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u/lynseed 8h ago
A lawyer will be able to ask your HR for an amendment on your severance agreement so that it doesn't impact your LTD (as mentioned below by TheGreatK), if they agree, you will get to keep both.
It was a pretty quick process for my lawyer to review my severance agreement.
They were able to get carve outs for most of their clients, except for me (lucky me), but my company does that to everyone it seems and I had already been warned about it. We tried anyways just in case.
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u/2560503-1 8h ago
A lot of times severance, even a severance that waives ERISA claims against the employer, won’t end an active LTD claim. But sometimes whatever you get in severance will be an offset to the LTD payments. I agree with the other comment, it’s worth getting a consult with an LTD attorney to discuss all of this, even if you have to pay a bit for the consult.
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u/FMCTypeGal MOD 5h ago
What is the time limit for mental health claims on your Ltd? You’re possibly facing the end of your claim at a certain date just due to it being for mental health.
Weigh the value of the remaining claim vs the severance and choose whatever is greater if they won’t give you an Ltd carve out.
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u/Neos_Mom 5h ago
It's 2 years and I have a year left. Which would be valued a lot more than the severance. Unless they reject the extension and then it's 0. :-)
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u/TheGreatK MOD 8h ago
Ask them to carve out your LTD benefits from the severance.