Getting Disability Assistance During a New Jersey Personal Injury Case

It takes up to 18 months to finish out a personal injury case. If you can’t work during that time then you’re going to need to find some other source of income.

For many, this will mean reaching for government disability benefits or for benefits from a private disability insurance company. Here’s what you need to know about your options, and how they might interact with your personal injury claim.

Private Disability Insurance

Most people purchase short-term and long-term disability insurance through their employers. You may be able to claim those benefits after becoming disabled due to a car accident or other personal injury claim. Often you will have to start with a short-term disability claim. 

The way this works and what you’ll need to do to make your claim will depend on your policy. Your policy will spell out how much money you can expect to receive on a monthly basis, how long after your disabling event you have to wait before benefits start, how long the benefits will last, and the conditions your policy will and won’t cover. 

Usually these policies cover a percentage of your income.

Once you take these benefits some or all of them will be paid back to your insurance company through the “lost wages” portion of your settlement. This is because personal injury law does not allow “double dipping.” You can’t get the same payment for the same benefit from two different companies. Instead, these companies may seek reimbursement from each other. You aren’t losing this money, though it may seem that way. You’ve simply already received it. 

What is SSDI?

SSDI is the Social Security Disability Insurance program. This is an earned benefit, and the monthly amount you receive will depend on your work credits. 

Applying for benefits isn’t always easy, and can often take just as long as your personal injury settlement does. Nevertheless, for some people these benefits will be well worth pursuing. 

You can get these benefits regardless of whether or not you have a personal injury settlement, and your income and assets don’t matter.

What is SSI?

SSI is the Supplemental Security Income program. This program is a needs-based program. It’s available to individuals with resources of $2,000 or less.

You may be able to get SSI in the short-term but your personal injury settlement can instantly reduce or terminate your SSI benefits. If you’re getting SSI we recommend transferring your award to a special needs trust. This will get many of your expenses paid without increasing the amount of money you receive.

You absolutely do not have the option of failing to report your personal injury settlement. You must do so within ten days of receiving it. 

What if You Were Already Receiving Disability Benefits At the Time of Your Accident?

If you were already receiving disability benefits then your settlement can get somewhat complicated. The defense may use your pre-existing conditions to muddy the waters of responsibility for your injury. 

In addition, if you weren’t earning income at the time of your injury then you can’t be compensated for wage loss. It may also be harder to negotiate a loss of earning capacity settlement, as it will not be as clear whether or not you actually lost an ability to work that you would have actually had.

It will be up to your personal injury attorney to make the most of your settlement potential and to navigate each of these issues. 

Get Help Today

Regardless of how you navigate disability benefits, you will eventually need your personal injury settlement to pay medical bills and other expenses.

Don’t leave your settlement up to chance. Contact us today to schedule a free case evaluation.

See also:

4 Myths About New Jersey Personal Injury Cases

Do All New Jersey Car Accidents Require Help From a Personal Injury Attorney?

Can Creditors Take My NJ Personal Injury Settlement Money?