Financial Alternatives When You a Work Injury

Sunday, October 13, 2002 | 0

Workers' compensation is not a financial panacea when you are injured and cannot earn a living. At best work comp financial solutions represent a stop gap measure, and the frank reality of the situation is that if you have not saved up some money in the emergency fund you will find the periodic payments while you are disabled woefully inadequate, and that assumes that the insurance company accepted your claim.

There are alternatives however that may be of assistance while you recover from your injury. We'll explore some of them here.

Social Security DisabilityYou may be entitled to social security disability (SDI). The standard for collecting SDI is tough: your condition must be such that it interferes with the basic activities of your prior employment and you must be unable to do any other work as well. Important elements that will be considered in your attempt to secure SDI include your medical condition, age, education, past work experience and transferable skills.

Collecting SDI may interfere with the collection of work comp. A typical rule of thumb is that your SDI and work comp indemnity together can't exceed 80% of your average earnings just prior to your injury. Also, SDI may be affected by civil service disability benefits, state temporary disability benefits and state or local government retirement benefits based on disability. Contact your local social security office to find out for more information on whether your ability to collect SDI is going to be affected.

Unemployment Compensation

You may be able to collect unemployment benefits while you're waiting for your workers' comp claim to start paying. However there is a small conflict: you must be willing to declare that you are able and willing to do some specific type of work and that you are currently actively seeking employment. This may compromise your ability to receive workers' compensation benefits in the future so you should be careful about exercising this option.

Medical Insurance

If you had medical insurance through work or privately it should cover your health care expenses and in most work comp systems the deductible you pay can be recovered in your work comp case.

Short- or Long-Term Disability Insurance

Some employers offer disability coverage, or you may have purchased a policy on your own. This coverage can kick in anywhere from 30 days to six months after a disabling injury or illness. Be sure to check your disability policy if applicable.

Credit or Mortgage Insurance

If you bought into one of those "tragedy insurance" programs through one of those flyers you got in the mail, your mortgage or credit card bills may be covered while you are disabled. Pull out your contract and read the fine print, or call the insurance company that you pay through your credit card or mortgage company. May as well have your credit card or mortgage payments covered as the whole issue while you are on disability is cash flow management.

ADA Accommodations/Voc Rehab

Your employer may be obligated to return you to some gainful employment, and in fact, in most states where there is a vocational rehabilitation system, they have an incentive to do so. Ask your employer, or if applicable, your claims person, about modified or alternative work duties that may be available.

Prior articles on this site have counseled that it is up to you to take charge of your case after a work injury. Managing cash flow, and availing yourself of legal means to ensure a positive cash flow, is just part of ensuring your successful recovery from a work injury. If you have any question, you can ask them in the Injured Workers forum, or contact any of the attorneys in our database. Both services are completely free to use.