Can a long-term disability insurance company claim an overpayment once a claimant is approved for social security disability income benefits?
- Social Security Disability Offsets in Disability Insurance Claims
Most group long-term disability policies contain a deductible source of income provision. It is very rare to see an individual long-term disability policy with a social security offset. A deductible source of income is also known as an offset.
Social Security Disability Income benefits (SSDI) are almost always considered a deductible source of income. SSDI is only one type of deductible source of income commonly found in group long-term disability policies. If a disability carrier has been paying you long-term disability benefits for 20 months and you get awarded SSDI benefits which are retroactive to 15 months prior, then your disability carrier will claim that you were overpaid for 15 of the past 20 months and you must pay the retroactive SSDI award to your long-term disability carrier. In addition, each month moving forward, your disability carrier will reduce your monthly benefit amount by the amount of your monthly SSDI check.
For example, if SSDI is paying you $1,600 a month and your disability carrier was previously paying you $3,000 a month, then your long disability carrier will now only pay $1,400 a month. Essentially the United States government just saved the disability insurance company $1,600 a month.
I generally tell clients that are approved for SSDI not to spend their retroactive award of disability benefits as their disability carrier will be asking them to turn over the full amount.
There are 776 opinions so far. Add your comment now.
Request a Free Consultation
Click Here or call 800-682-8331 Now.
We respond the same day.
We represent disability insurance claimants all over the United States.
We have handled thousands of disability claims and you can read about them.
- Sun Life Approves Disability Benefits to Surgical Services Director
- Sedgwick Reinstates Long Term Disability Claim Following Appeal
- 67 Year Old Circuits Designer Reaches Settlement With Prudential After Filing Suit to Recover LTD Benefits Under ERISA LTD Insurance Plan
- Palm Beach County Sheriff’s Deputy’s Long Term Disability Claim Reinstated Following Appeal by Disability Attorney Alexander Palamara
Read what our clients say about us.
- Dawn P. ·I had to quit working after 8 years of dealing with chronic pain from 2 bulging and torn discs from an injury and failey back surgery. I was approved for Long term...› continue
- BK. K. ·After my claim was denied I was at a standstill. Not knowing what to do next, I happened upon Dell & Schaefer on an Internet search...skeptically I investigated and did...› continue
- Kelly P. ·Mr. Palamara and his staff were professional and personable. I am pleased that I got to meet the staff and the mediator in person. After meeting the staff and Mr...› continue