Can You Receive Both VA and Long-Term Disability Benefits?
CCK Law: Our Vital Role in Veterans Law
According to the Department of Veterans Affairs (VA), nearly six million veterans receive disability compensation for their service-connected conditions. Many of these disabled veterans still work to some degree—but some are no longer able to. If these veterans also have long-term disability (LTD) insurance through their employers, then a question arises: Can they receive both types of disability benefits at the same time?
The short answer: Yes. Veterans may be eligible for both. However, there are key differences between VA disability compensation and LTD benefits. Moreover, LTD insurance policies often contain provisions that affect how the two interact.
In this article, CCK Law will discuss:
- VA disability benefits
- Long-term disability benefits
- How VA and LTD benefits differ
- And more
What Are VA Disability Benefits?
To understand the differences between VA disability compensation and long-term disability—and how they potentially work together—it is important to have a quick background on both.
VA disability benefits are provided by law to veterans who suffer an injury or illness caused or worsened by their military service.
Key features of VA disability benefits include:
- Disability ratings: Ranging from 0 to 100 percent, determining monthly compensation amounts.
- Re-examinations: VA may re-examine veterans to adjust ratings, though long-standing ratings gain stronger protections.
- Employment: Veterans can work while receiving benefits, except in special cases, such as Total Disability based on Individual Unemployability (TDIU).
What Are Long-Term Disability (LTD) Benefits?
On the other hand, LTD insurance provides income replacement when an injury or illness prevents someone from working for an extended period. Coverage is usually through an employer’s group policy (typically governed by ERISA), although individual policies can also be purchased privately.
Key features of LTD benefits include:
- Definition of disability: The standard you must meet to receive benefits. But policies vary. Some only require that you cannot perform the key duties of your own job, while others require that you cannot perform any occupation whatsoever.
- Calculation of benefits: LTD benefits are typically a percentage of pre-disability earnings (commonly 60–80%), unlike VA benefits, which follow a fixed rating system.
- Cause of disability: LTD claims do not require proof that an illness or injury is service-connected or job-related.
Pre-Existing Conditions in Long-Term Disability Claims
Long-term disability insurance policies also often include limitation and exclusion clauses. These clauses can limit the amount of benefits a claimant receives; and in some instances, they can prohibit a person from getting any benefits at all.
Most LTD policies include pre-existing condition exclusions, which exclude coverage for certain disabilities. These exclusions usually apply to conditions the claimant was treated for prior to obtaining LTD coverage, and they generally only come into play if the disability arises within the first 12 months of coverage, although specifics can vary policy to policy.
For example, if a veteran had a service-connected back injury before getting LTD insurance, and that condition worsened shortly after LTD coverage began such that they can no longer work, the claim may be excluded.
That said, exclusions do not apply in every case. If a veteran develops a new, non-service-connected condition after coverage begins that then prevents them from working, they may still qualify for LTD benefits. The key is to review the exact language of the policy, as these provisions vary widely from plan to plan.
Do VA Benefits Reduce LTD Payments?
VA benefits may reduce LTD benefits, but individuals must read their policies to know for certain. Many LTD policies include offset provisions. These provisions reduce LTD payments when the claimant is receiving other income, such as VA disability benefits.
For example:
- A policy might provide $2,000 per month in LTD coverage.
- If the veteran also receives $1,500 in VA benefits, the LTD insurer may reduce the LTD payout to $500 per month.
But not all policies have the same offsets:
- Some count VA disability as “other income” and reduce LTD benefits.
- Others specifically state that VA disability compensation is not an offset.
Always check your policy to determine whether VA benefits will affect LTD payments.
What If the Conditions Are Different?
A common question is whether VA disability benefits can offset LTD benefits if the conditions are unrelated. In some cases, courts have ruled that when a veteran’s VA disability stems from a different condition than the one leading to the LTD claim, insurers cannot offset the benefits.
However, this is not a guaranteed outcome. The answer depends on the exact wording of the LTD policy, which may be written in vague or overly broad terms.
Unfortunately, insurers often interpret these provisions in ways that minimize their financial responsibility, meaning veterans may need to challenge the insurer’s decision to protect their benefits.
How Do VA and LTD Claims Differ?
The claims processes for VA disability and LTD insurance are quite different:
- VA claims: By law, VA must give veterans the benefit of the doubt when evaluating evidence.
- LTD claims: Insurers are not bound by this standard and often look for reasons to deny or reduce benefits whenever possible.
This means LTD claims can feel more adversarial than VA claims. Insurers may seize on inconsistencies in medical records, argue that a veteran can work in a different occupation, or cite exclusions buried in the policy language. Insurance companies may also surveil claimants to aid in denying claims.
Veterans who are approved for VA disability benefits may still face an uphill battle when trying to secure or maintain LTD benefits.
Can You Collect Both VA Disability and LTD Benefits?
Yes, veterans can potentially receive both VA disability and LTD benefits. However, the interaction between the two depends on the specifics of the LTD policy. Veterans should:
- Review their LTD policy for offsets, exclusions, and definitions of disability.
- Understand how pre-existing condition rules may apply.
- Recognize that insurers may interpret vague policy language in their own favor.
- Be prepared to appeal denials or reductions in benefits.
Call CCK Law Today
Receiving both VA disability and LTD benefits is possible, but the outcome often depends on the language of the LTD policy. Veterans should carefully review their coverage and be aware of the differences in how these two systems operate.
If you are considering filing for LTD benefits or have been denied, professional assistance may help protect your rights and maximize the benefits available to you. Contact our long-term disability team for a free case evaluation.
If you need help with your LTD claim or VA compensation appeal, then CCK Law may be able to help. Call us today at (800) 544-9144 for a free case evaluation with a member of our team.
