Can I Get Long Term Disability Benefits if I Live Outside of the U.S.?

Filing a Long Term Disability (“LTD”) insurance claim is a challenge in itself, but what if you’re faced with the additional complexity of living outside the United States?  You may be wondering how non-residency affects your eligibility to receive LTD benefits.  There are many important factors to consider, from understanding the eligibility criteria and policy provisions to addressing the legal and logistical hurdles that can arise in international scenarios.

Below we’ll answer common questions about receiving LTD benefits outside of the U.S., whether you are an employee of a U.S.-based company living abroad or a U.S. resident planning to move outside of the country.

Can I receive LTD benefits as an employee of a U.S.-based company living outside of the U.S.?

The short answer is yes, it is possible to receive LTD benefits if you are employed by a U.S.-based company but live abroad.  However, several factors will determine your eligibility and the process involved.

First and foremost, it depends on whether your employer’s LTD insurance policy extends coverage to employees residing outside the U.S.  Some U.S. employers offer international coverage as part of their LTD insurance plans, while others may not.  It is crucial to review the provisions of your disability insurance policy to understand the specifics.

If your policy does provide international coverage, you will likely be eligible for LTD benefits as long as you meet the policy’s criteria for disability.  Each policy varies, but these criteria typically include being unable to perform the essential duties of your occupation due to a medical condition.

Keep in mind that the terms and conditions of LTD coverage can vary significantly between insurance providers and policies.  Seeking clarification from an experienced ERISA attorney who can review your policy thoroughly is essential before filing your claim.

• • Example: Sarah works for a U.S.-based multinational corporation and is currently residing in the United Kingdom due to a work assignment. Her employer’s LTD insurance policy includes international coverage for employees in similar situations. If Sarah becomes disabled and meets the policy’s disability criteria, she will be eligible for LTD benefits, even though she is living in the U.K.

What if I’m a U.S. resident who plans to move outside of the U.S.?

If you are a U.S. resident who is considering moving abroad, whether temporarily or permanently, and you have an existing LTD insurance policy, it’s essential to understand how your coverage may be affected by the move.

• • Temporary Relocation: If you plan to live outside of the U.S. temporarily, your existing LTD coverage may still apply.  However, consulting with a disability insurance attorney can help ensure that you remain in compliance with your policy’s requirements and can access your benefits if needed.

Example: David, a U.S. resident, decides to spend a year in France for a sabbatical but plans to return to the U.S. afterward. He has LTD coverage through his employer. Under the terms of his policy, David can continue to receive benefits if he becomes disabled during his temporary stay in France.

• • Permanent Relocation: If you are relocating outside of the U.S. on a permanent basis, the situation becomes more complex.  The availability of LTD benefits will depend on your specific policy and insurance provider.  Some LTD policies may require you to maintain U.S. residency to remain eligible for benefits.  If you move to another country and establish residency there, you may no longer meet the requirements for coverage.  It will be necessary to review the policy terms to determine how your coverage will be affected by the move.

Example: Emily, a U.S. resident, has been receiving LTD benefits for five years.  Her condition has not improved, and she decides to relocate to Mexico permanently.  In this situation, Emily’s continued eligibility for LTD benefits will depend on her specific policy and insurance provider.  Some policies may continue to provide benefits to U.S. residents living abroad, while others may not.  Emily should consult an attorney who can review the policy terms to determine how her claim will be affected by her permanent move to Mexico.

Are there any other factors to consider when living outside of the U.S. and receiving LTD benefits?

Living outside of the U.S. can introduce certain other complicating factors when it comes to receiving LTD benefits.  Here are some important considerations:

• • Currency and Payment: If you are approved for LTD benefits while living abroad, you should be aware that payments may be subject to currency exchange rates.  It’s important to understand how your benefits will be calculated and paid, as currency fluctuations can impact the amount you receive.
  • Medical Evaluations: Many LTD policies require ongoing medical evaluations to assess your disability and eligibility for benefits.  If you live outside of the U.S., your insurance provider may require you to undergo these evaluations by qualified medical professionals in your new country of residence.  Ensure that you are aware of these requirements and can fulfill them as needed.
  • Policy Language and Legal Jurisdiction: Your LTD policy may be subject to the laws and legal jurisdiction of the United States.  This means that any disputes or legal matters related to your benefits will likely be governed by U.S. law.  Understanding the implications of this and seeking legal counsel if necessary is advisable.

How can an attorney help me receive LTD benefits outside of the U.S.?

Navigating LTD benefits when living outside of the United States can be complex, but it is certainly possible.  The key is to thoroughly understand your specific LTD policy and its provisions.  A long term disability attorney can help you determine how residing outside of the U.S. may affect your LTD coverage.

If you are looking to file a claim while living outside the U.S., or if your claim has already been approved and you want to determine how any move will affect your benefits, Riemer Hess can help.  Our attorneys will review your disability insurance policy to understand if it extends coverage to employees living outside of the U.S.  We’ve helped countless clients secure their long term disability benefits for over 28 years, including many living abroad.