Can you work if you apply for disability?

Answer 1

Whether or not you are able to work while collecting Disability insurance benefits will be entirely dependent on the definition of total disability (description of the circumstances in which you are eligible for a claim), in your insurance contract. These are the most common variations available on today's market.

True Own-Occupation Definition of Total Disability

You will be considered totally disabled if, due to injury or sickness, you are unable to perform the material and substantial duties of your occupation, even if you are gainfully employed in another occupation.

Modified Own-Occupation Definition of Total Disability

You will be considered totally disabled if, due to injury or sickness, you are unable to perform the material and substantial duties of your regular occupation and are not gainfully employed elsewhere.

Any-Occupation Definition of Total Disability

You will be considered totally disabled if, due to injury or sickness, you are unable to perform any occupation for which you are reasonably fitted by your education and experience; and are not gainfully employed.

*Every insurance company will have a separate version of these definitions. These descriptions should be used to help understand the differences, but not as any form of guarantee.

The easiest way to separate the different definitions is by knowing whether you have your own individual coverage, group coverage offered at work or are simply relying on Social Security benefits.

Traditionally, True-Own occupation Disability insurance will only be available in a personally owned policy. Occasionally companies will use a True or Modified Own occupation definition for the first 24-60 months of a contract, but then change to an Any-occupation definition. Again, you need to check the guidelines of your policy in order to know what your policy offers you.

Group coverage will often have a True or Modified Own-Occupation definition of disability for the first 24-36 months of a claim and then turn to an Any-Occupation definition. Talk with your Human Resource department or office manager to learn more about what your group coverage offers. If that person does not know, you should either have them call the company that provides your coverage, or call yourself and ask for policy information.

Social Security disability insurance uses an Any-Occupation definition of disability, at best. In order to qualify for Social Security benefits, you must be unable to perform any occupation and there also must be a strong indication that your claim will continue for multiple year at the least.

To summarize, you may be able to obtain benefits while working if you have an individual or group policy that provides a True Own-Occupation definition of Total disability. With Social Security benefits you are not able to do so.