Some employers will offer a severance package providing for salary or medical benefit continuation, if you sign a general release, releasing them from all claims. If you decide to take such a package, you must be careful not to release your ability to apply for or continue to receive disability benefits under your company’s long-term disability plan. Remember, long term disability insurance only covers you if you become disabled while employed. If your employment is terminated or if you resign and then apply for disability benefits, it may be difficult to prove that you became disabled before your employment ended. If you are considering filing a disability insurance claim you should consult with an experienced ERISA lawyer before you leave your job.
