Can a long-term disability insurance company claim an overpayment once a claimant is approved for social security disability income benefits?
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 deducitble 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.
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Frequently Asked Questions
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I need your help. I am disabled. I pull my retirement ’cause I was suffering with bills the company fired me and my company did not pay into social security so I had to go on their long term disability. Now I pull this retirement 2 years a little after they had approved me for the the long term disability. This was done in 2008. Now I have recieved a letter form them stating that I was supposed to let them know. This is my money that I worked hard for so can you let me know what you can do for me. Thank you, Sharon.
Sharon, you need to check the language in your long term disability policy and see if retirement income is a deductible source of income. If the disability company is looking to offset your disability benefit by the amount of your retirement distribution and you want to tell them they can only offset one month’s benefit check and not the entire amount of the retirement distribution.
I was a Geogia State Employee and became disabled and I was receiving long term disability from the Standard when Social Security approved me for SSDI. Now the standard claims and overpayment and wants to be reimbursed 15,000.00. Why do I have to repay them if my LTD premium was deducted biweekly from my salary. Additionally, I find no legal authority which requires repayment…
Josephine, most ERISA governed long term disability policy contain language stating that SSDI benefits are a deductible source of income. You need to check your disability policy to see if The Standard is entitled to an offset for SSDI benefits.
I have a different kind of problem going on, my doctors office completed a FCE wrong, the secretary who filled it out did not put my restrictions on the form basicly saying i can return to work and my doctor signed the form and it got sent to Hartford I have been on disabilty with Hartford for 3 years also collecting SSD. My doctor is willing to write a letter to Hartford to explain my restrictions my question is are they going to accept it since he signed the FCE with the wrong information. Thanks for your help.
Judy, you doctor can certainly send a clarification letter to Hartford and it would be a good idea to have him do so. Please make sure he is specific about any of the mistakes that were made. This should be done ASAP.
What happens if I dont send (company paid) LTD the overpayment from social security disability? My paperwork reads: “It will reduce to minimum amount required by law, and referral to collections till paid.” Can they guarnish my disability? I’m afraid once they receive the “overpayment” they will find a way to cut me off & I will lose my home, due to less income. I can pay off home with backpay.
Carla, they can garnish your future disability payments and they could try to sue you for the overpayment benefits they are claiming. There is no guarantee that they will continue to pay you once you send them the overpayment money.
Help. I went on Long term disability because of Kidney failure in 2005. I stopped working and started receiving benefits from Metlife in November of 2005. In 2010 I received an award for a class action lawsuit unrelated to my disability, I opted in as a class menber in 2006 for Wells Fargo OT class action Lawsuit.
My share of the award was detemined to be from 2/2001 to 10/31/2005 based on the number of weeks worked. When I received the check the law firm stated that 1/2 of the settlement award must be treated as “back wages” and the other 1/2 as “Liquidated Damages”.
Can MetLife offset my benefits by this income? My LTD plan has a provision for deducting amount of income stating: The gross LTD benefit will be automatically reduced by the amount of income you are eligible to receive from other sources, including but not limited to:
Further down the list it states:
Third party recovery for loss of income by judgement, settlement or otherwise, including recovery amounts you may receive from future earnings.
Can they claim an “Overpayment” and request that I reimburse them these funds?
Thanks,
Mike from Minnesota
Mike, without seeing your policy it is difficult to answer your question. Generally, if income is for services provided prior to disability, then it should not be deductible. You should maintain copies of all documentation clarifying the time period for which the payments covers.
I have a general question that you may know the answer to. My wife has MS and has been on LTD since 1986 from a policy provided by her former employer (Northrop). She also receives SSI and, of course, the insurer (MetLife) reduces her disability payments each moth by the amount she receives from SSI. Yesterday we were called by MetLife saying they made a mistake in their initial calculations (15 years ago) of their monthly payments to us by $8/month, and they want us to return 15 years worth of claimed overpayments ($1,440). First, can they do this (since it was their error), and second, can they go back 15 years worth? Even the IRS allows one to go back no more than 3 years. Also, they have never applied COLA to their payments, unlike SSI. Do they have to?
David, I have seen thousands of overpayment request, but I have never seen a company go back 15 years. My impression is that it would be unlawful for MetLife to seek an overpayment do to a mistake they made 15 years ago. I think that worse case scenario that MetLife is limited to the statute of limitations in your state or the limitations clause on all claims in your wife’s policy. The statute of limitation for claims varies in every state but is never longer than 6 years. The policy may limit all claims to three years and this could be argued to apply to your wife’s claim as well. You should ask MetLife to provide you with the legal basis they are relying upon in order to seek payments from 15 years ago. I would tell them that they are estopped from collecting an overpayment from 15 years and that the statute of limitations for them to claim a 15 year overpayment has been exhausted. Certainly if your wife had waited 15 years to make her claim for benefits, then they would have denied the claim. You have to right to file an Appeal with MetLife if they don’t agree with you the first time. I don’t have the exact answer and I have never seen this issue before. This repsonse is my opinion and should not be construed as legal advise as you are not my client. I am required to give you this disclaimer so that you do not rely on my opinions. I wish you luck.
I have the same concerns as several of the blogs above. In my case Lincoln Financial is the LTD Insurance carrier. They have done countless, less than honest practices managing my benefit payments. Blatant “slow walking” or with holding of benefits, failure to disclose requirements neccessary for continued benefits, un-accessible representatives available for assistance regarding benefits and more have been the nightmare I have had to endure. The compounded stress for the last five years has seriously affected my health, well being, recovery and state of mind. I feel as though I live in terror. One example: I did not recieve my benefit payment for three months. I was not given a reason for the interruption of my funds? I kept explicit documentation of the daily calls and faxes to my representative of my attempts to resolve the matter with no success. When I was finally contacted I was apologized to and it was explained to me that she had gone out on maternity leave and forgot to set up my scheduled payments. Do you have any understanding what that does?
It tears a person down and belittles them. The mismanagement of funds took away the position of being empowered and able to manage my own life. I didn’t know how I was going to pay my mortgage, my utilies were in jeopardy of shut off, I had no money to buy food or keep a scheduled doctors appointments, in short I could not be sure I could maintain the basic daily living standard. I had no money to even purchase perscribed medication. I spent most of my life working hard. I am a productive member of my community. I deserve to be treated fairly. When our major institutions are allowed to employ decietful practices as the ones I have experienced with Lincoln Financial it is easy to understand why we are angry. Why should we play by the rules when the rules don’t apply to everyone.
I relate with Carla, above, they have tried several different ways to discontinue my policy. You know that if you give them back pay from SSD it will only be a short time before there is another reason to with hold benefits. I feel they should be responsible for the improper disclosure and with holding of funds which resulted in serious damage to my credit rating as I literally had no available money to keep my financial obligations current.
I have two daughters graduating college this May 2011, one from Palomar’s R.N. Program and the other from Madera State Center Co. College and accepted to Loma Linda’s P.T. Program. My son served in the U.S. Navy and was a Navy Seal Sharp Shooter. My mother is a Lt. Colonol in the U.S. Army. I come from a strong hard working family. I don’t know how to tell anyone I will not be able to pay rent next month. I am terrified and have no idea of what I am going to do. I will be homeless, unable to maintain insurance for my vehicle or pay fees, unable to pay for medical exams neccessary to continue policy coverage. They have finally managed to back me into a corner. I have a policy that pays me until I am 65 years old, worth approximately $300,000.00 yet I face these circumstances next month.
Can the Long term disability company, in any way, get the Social Security Disability people, to send them my back payment? Or will SSDI only send the back payments to the disabled person?
Also, I am being “assisted” by Genex… they have asked from SSDI a “representative payee information”. From what I am reading it is a request to be paid for services. I was told by UNUM that if I used Genex there was no cost. If I am not getting the rason that Genex asked for this information, what othr reason would they have to what the payee information?
Thanks,
Susan
Susan, it is our understanding that SSDI benefits can only be sent to you and not your disability insurance company. I have seen situations where SSDI benefits are withheld for child support. If you are approved for SSDI you will have an overpayment and probably owe the entire award to UNUM. The government will pay up to $6,000 of attorney fees for an SSDI attorney. Unum will deduct the award of any attorney fee from any overpayment. So, if Genex gets an award of attorney fees it is not costing you anything because the $6,000 paid to Genex from your SSDI benefits would have gone to UNUM anyhow.
My 38 year old son suffered a terrible accident in July of 2007. He eventually received LTD monthly payments. This is a third party liability court case. We are settling out of court for $250,000. The health ins. company will accept $7000 for their $239,000 claim. $100,000 will cover attorney fees, my son will get $100,000 net to him. The balance of $50,000 will be used to pay the ltd. carrier @ $38,000 (overpayment). Now after reading the policy SPD it says any settlement or award by a third party will be declared deductible income which is an offset just like soc. sec. payments. Therefore my understanding is that his $100,000 settlement will have to be returned to the LTD carrier. Do you agree? Doesn’t seem fair.
I started receiving long term disability payments for bi-polar disorder in February, 2009. They continued on until February, 2011 and then stopped because The Hartford only pays mental health disability for 24 months. They had me file for SSDI with a law firm they recommended. Even though I am no longer getting LTD payments, the law firm is still representing me to try and get me on SSDI. I asked them if I would still have to pay The Hartford back and they said yes. This doesn’t seem right to me since The Hartford is no longer paying me LTD payments. Is it legal for them to demand I pay them back even though they aren’t paying me anymore? Keep in mind, I haven’t been approved yet for SSDI. Thanks!
Douglas, your question is challenging. Hartford’s contract may give them the right to seek the funds, but their are some cases around the country that suggest that a disability carrier may not be entitled to receive the funds that have been overpaid. I have discussed some cases on this site so you should do a search with the terms overpayment and also SSDI overpayment. You may not need to pay any money back to Hartford in your situation. Since I am not your attorney I can not give you any legal advice at this time. You may want to contact us if you are approved for SSDI and Hartford seeks an overpayment.
Tom, we would have to review the policy language in order to determine how much, if any, needs to be paid to the carrier. Your personal injury attorney may want to include certain language in the Release Agreement with the third party defendant, which could reduce the amount of the overpayment. For example, what portion of the settlement is for lost wages? Should Hartford be entitled to an offset for pain and suffering or future medical compensation that was received? We have been retained to consult numerous claimants on this issue.
I have a situation where the group carrier not only claimed an overpayment for the SSDI received by my client, but also claimed as part of that overpayment the amount of the SSDI child benefit received by his minor daughter. Is this usually considered normal offset provision as well?
Brian, the situation you have described is unfortunately normal.
Due to Aids/bipolar 1 disorder. suicide attempts, chronic diarrhea, frequent Migraines, as well as frequent nausea and Seritonin Syndrome, I was advised by both of my doctors to apply for SSDI since I was not able to work and they both felt I was not going to return to work. I recently received my approval for SSDI, which I will only bet back pay after a since month period due to there rules, Through Gentiva Home Health I received Short term disability through December then I was approve for LTD. I called them and my Doctors office sent a letter from the approval letter of the SSDI, then I also called met life and spoke to a “representative”, since they will not let you talk to the case manager, God forbid one of them is disterb, I was told that I would have the long term disability deducted from my SSDI benefit, which will leave me $50 dollars a month to live on, so I have to canceled Cobra, $480.00 a month and I will be able to pay me mortgage payment, not to mention food, utilities, etc. I think this a poor benefit just putting off the enevital forclosure and not insurance and living on the street, hopefully I can find a tree here in AZ since it gets over 100 degrees in the summer. So I also want to know if they take your STD payments back as well, there is no mention of this in the employee handbook, all it says is that we have a ST benefit and a LT benefit, pretty sneeky I think. Any information would be helpful and soon before my electricity is turned off. Thanks, Rob.
Rob, most Short Term disability insurance policies don’t have setoff provisions for social security disability benefits. However, you need to review the terms of your Short Term disability policy.
Greg, I have a private, own occupation, non-erisa policy until 65 (40 now) that pays over $5000.00 a month and am receiving benefits for PTSD, anxiety, and depression (Iraq war veteran). I also receive 100% permanent and total disability from the VA and SSDI for the same conditions. From time to time, I get harrassed by insurer for psychotherapy notes (we refuse to provide them) and more independent medical exams. I have two questions:
First, is it likely that they will attempt to terminate my benefits now that I am receiving VA disability and SSDI? I thought those were much harder benefits to get than benefits from an own-occupation policy.
Second, is it wise to retain an attorney to shield myself from the nonsense and intimidation of the insurance carrier?
Please advise, thanks.
John, the disability carrier could deny your claim for failure to provide medical records. VA and SSDI can be more difficult to obtain in some states, but approval of these two government benefits is not binding on your disability company. You should watch our video on monthly claim handling to learn about the advantages of having an attorney assist you with your claim.
Gregory,
My husband has been receiving Long Term Disability pay from Lincoln Financial since March of 2007 in the amount of $2016.00 a month. In December of 2010 he was awarded Social Security in the amount of $1138.00 a month a we received back pay of approx. $6000.00. Knowing that the backpay would go to Lincoln, I have held this money aside for their payment.
When he was awarded Social Security, we contacted Lincoln and they reduced thier payment to offset the amount he is receiving. At that time, he also asked for the amount we owed them so we could quickly get it resolved (I hate owing money!). He faxed over the award letter with the backpay amount we received to help them calculate what was owed.
Finally 6 months later he has received a letter from Lincoln demanding payment of $39,000.000 in the next 30 days. This to me seems obviously wrong but when he called to let them know they told him that he was eligible for dependant pay of $550.00 a month (that we are not receiving) and they are asking to be payed back to March of 2009.
Is it even possible that we owe them money we never received from Social Security? Please take a look at this scenario and tell me what I’m missing.
Kristina, I am aware that some disability carriers will claim an offset even though the claimant has not received the funds. The problem is that some policies contain language that allow the disability company to estimate the amount of a setoff. If you write a letter and tell Lincoln Financial that you have not received any funds beyond those that you have sent them, then they should resume paying the full benefits.
I was approved for Social Security Disability and as expected MetLife is asking for an overpayment of funds they paid me on my LTD I had through my employer. My question is can MetLife ask for my children’s retroactive payments that were sent to me by social security? I have asked this question two times to Metlife and cannot get a straight answer from them. To date I have only been asked for MY retroactive payments not the kids’ but I am afraid to use the money to help with college bills for the kids only to have MetLife come back and ask for it.
Bonnie, your question does not have a concrete answer. Please see Can a disability insurance company claim an overpayment for social security disability benefits payable to a child as result of the parent’s disability? for more information that may be helpful.
I was hurt and started to get short term disability from an insurance policy from my job, now thay started me on long term disability. Can I get my social security and the long term at the same time?
Thomas, the answer to your question depends on the language in your long term disability policy. If you have a group disability policy provided by your employer, then your disability policy probably does not allow you to receive ssdi and Long term disability at the same time. You want to look at the deductible sources of income section of your policy.
My husband had a serious wreck in April 2010. Has LTD through his employer through CIGNA. His employer hired a company to help him get on SS Disability. Within the last week husband was approved Medically with a onset date of the accident, but non-medically approved him a year from the date of accident, April 2011. After reading all the information above now I wonder if we should appeal his case or accept the approval of benefits with the effective date of April 2011? That way we shouldn’t have to pay back CIGNA anything, correct? My assumption is that CIGNA would stop the LTD effective October 2011, correct? We live in the state of Texas and from what I understand SSDI benefits will not begin till October 2011, 5 months after the approval date of the onset of SSDI benefits. I would love to hear your thoughts and suggestions! Thanks!!
I have received ERISA Short Term Disability that has now ended; my LTD claim is now on hold for review. I have since requested and received a total withdrawn of my 401k pension, I still have the check. Will the insurance company be entitled to my pension for pass STD received or future LTD if my claim is rewarded?
Disabled in Texas: If the Cigna date of disability is April 2010, then Cigna would seek reimbursement for any SSDI benefits paid back to that date. Cigna may require you to appeal the SSDI denial, but you are correct that is does nothing but benefit Cigna. A back date of SSDI may help your husband get medicare sooner. I am not an SSDI attorney so I don’t know about medicare approval. If your husband is still unable to work, them Cigna and SSDI should continue to pay. If you need assistance please contact us.
James, unfortunately we cannot answer your question without reviewing your policy. I have seen many disability policies that consider 401k pension to be a deductible source of income.
Hello,
I have been paid by my LTD company, The Standard, since I became disabled 11/2008. Social Security has just approved my claim back to 12/2008. My LTD company didn’t start paying until my STD plan ran out in 1/2009. I was contacted by the SSA today. They advised me that I have been approved and that the $45k back payment they owe me will be deposited and that I would need to transfer that over to my LTD company. That’s fine. Then they said that they are also retro paying me for my children to the sum of $23k. I asked SSA if I need to sent the $23k to my LTD company and they told me no, that the LTD company does not have a right to my children’s money, only to my money. My policy states that any “deductible income” will be considered. Then it talks about full offset, primary offset and partial dependents offset. It doesn’t tell me which one applies to me? It is very confusing! Are they entitled to the backpay for my children? Are they entitled to future benefits paid to my children? What’s your opinion? I would appreciate any information you can give me. I live in the state of Florida. Thanks!
Floknoes,
The answer depends on the language of your policy. Please see the following frequently asked question which may help answer your question of child social security disability benefits: Can a disability insurance company claim an overpayment for social security disability benefits payable to a child as result of the parent’s disability?
Disability, not much left to live for. Finally got my SSD, now I finally have a little money I could use to fix some things and pay some bills but have to turn it over to Met so OK. I was told they would pay me a certain amount when this was over and now they changed their minds, so even less money!!! Oh goodie, this means I get to move again, all these years protecting the public, proud of what I did, washed up with siezures two years ago, other medical problems that won’t go away and it’s all over, not what I planned for at 53. Food boxes, bread lines, free farmer’s markets, no one comes around and it’s not my attitude, I am just not in the loop anymore, and I am broke all the time plus the meds. I keep telling myself this will get better but alll it does it gets worse.
I’m currently on longterm disability and MetLife has given me the run around and cut me off for months even though my medical documentation supported my disability claim and was reinstated upon appeal. I’m wondering if approved for social security for fibromyalgia if MetLife requires that I have to pay back everything over the 100% allowed of predisability earnings or if I am required to send entire monthly them amount received for each month from social security?
Kadee,
In most group disability insurance policies if you are approved for ssdi, then the disability carrier will seek the entire ssdi disability award as a repayment. The amount sought will be to offset any disability benefits that the disability carrier has paid the claimant.
I was receiving ltd from Prudential. I also applied for widow’s ss disability. You see, I am a widow, my husband died in 2004. I became disabled in 2010. Now my long term disability company wants me to pay back money I received from my widow’s disability that I was receiving since January of 2011. Can they do this? I thought when it’s a widow’s disability they could not do this. They are claiming I owe over $7000.00. Do you have any insight on this kind of situation. I appreciate any feedback. Thanks so much.
Lottie,
We would need to review the exact language of your disability policy in order to determine if Prudential is entitled to a setoff for widow social security disability benefits. In most cases the disability carrier is not entitled to a setoff for the widow benefits. You should write to Prudential and explain the situation. Additionally, you were receiving the widow benefit prior to receiving disability benefits from Prudential, which is another reason that they should not be entitled to the $7,000 they are seeking.
I live in Texas. I was awarded SS disability in July 2009 and it was backdated to April 2008 (12 months before I filed.) The date of onset was determined to be in July 2007.
My LTD carrier deducted the award amount ($20,000) from my monthly benefit check until it was paid back to the LTD carrier.
Today (8-15-2011) the SS office finished a review of my case and decided to reset the date of onset to early 2009 and says I have $19,000 overpayment. I will work a payment plan out with them.
My question is can I recover the award monies paid to the LTD? It seems fair because I no longer have the award technically.
I hope I worded the question correctly.
Michael,
You may be able to recover the money you paid to the disability carrier. You need to be careful that you don’t jeopardize your current claim with your disability company. You will have to send a letter requesting money back from MetLife if you choose to go that route.
I was approved for social security, March 2011. They paid me 5 months backpay. I didn’t tell my longterm disability that I was approved for SSD because I know I have to give them back all that reward money. I am handicapped and disabled and this money will help me a lot for my medical expenses. I did not sign the papers that the long term disability sent me so that they can get information regarding how much benefit I get from SSD. Will my longterm disability find out that I’ve been collecting SSD. I am confused and don’t know what to do. If I tell them the truth now, they might question me why I did not tell them that I’ve been collecting SSD benefit and I will end up in jail. I need help.
Confused,
You have a contractual duty to tell the disability carrier about your SSDI. You do not need to be concerned about being arrested as long you don’t commit insurance fraud. You cannot lie if they ask you if you are receiving SSDI.
I am on soc. sec. disability and Metlife is also the ltd. insurance carrier since 2001.
Prior to Metlife, Northwestern was the ltd. insurance carrier and they did not deduct the social security cost of living every year from their benefits. They were the ltd. insurance from 1987 to 2001.
Now Metlife is reviewing my case and claim they have overpaid me since they apparently never send in to Soc. Sec. with the release I signed to them right from the beginning.
Do I owe them anything since for 14 years the other ltd company never adjusted my monthly benefits for cola.?
Murielle,
If the policy states that SSDI is an offset, then MetLife may be entitled to an overpayment reimbursement. However, I am not sure that they can go back and recover 14 years. Also, there are some cases that limit an insurance companies ability to recover for an overpayment from funds that have already been paid. You can find some of these case on our website. Your Northwestern Life disability policy will govern your claim if you were disabled when the Northwestern policy was in force.
I was on LTD through Metlife. I filed for SSI at my company’s insistence and signed an agreement that if I was awarded SSI I would pay Metlife back through their attorney representing me and a portion would go to the attorney. I was awarded the back payment, I sent the major part ($33,000) to their attorney as instructed, the attorney in turn paid Metllife. I also paid the attorney representing Metlife (me) seperately. Both checks were cased and paid out (cancelled checks). Subsequently, several weeks later my checking account reflected a credit in the exact amount of $33,000. It took a few months for them to contact me but they when they did they wanted me to “pay them back” and that it was a an error on their part. What if anything can they do to make me “pay them back”
Mr. Gregory Dell,
I understand that Insurance companies have lobbiest at D.C. and are the reason they have group policies that setoff overpayments of SSDI income but it should actually be treated like any other federal income (VA, Retirement etc.). But – like most messages on this blog – why should they benefit from government funds that most Americans earned for contributing to social security? If we paid premiums to STD/LTD insurance companies what is the benefit of claiming against them since eventually they are going to get back the offset or overpayment of income received from SSA which we actually contributed to? Why has Congress not looked at this and realize that these insurance companies are actually stealing from citizens of this country and only one that benefits is the insurance companies?
Rick,
Metlife can either stop paying your benefits or they can sue you to attempt to recover the $33,000. Whether or not a lawsuit would be successful depends on numerous factors sucha s the language in your MetLife disability policy and the law that will apply to your claim.
I was on LTD back in 1999-2003, at which time they discontinued my coverage. I received my SSDI around the same time so I wasn’t too concerned about continuing my coverage with them, they were always trying to cancel my for one thing or another and my doctors were getting tired of filling out their paperwork every month. Well, June 2011 I am contacted by a collection agency and am told that I owe a large amount of money to my LTD company. I was never informed via mail, phone or person of this debt until 8 years later, I moved out of state around that time. I am still disabled and there is no way for me to pay this back. I am scared to death and having a lot trouble sleeping, my doctor has had to add anti anxiety meds. My question is can they still come after me after 8 years. I have looked up statutes of limitations in both states (the one I lived in while receiving benefits and the one I live in now) but I am unclear what kind of debt this falls under. I responded to the letter from the collection agency, they sent me a letter that does in no way prove I owe the amount they say I do. Please advise.
I recieved LTD in 2008-2009, maybe about 12 months – not sure, but I haver suffered many years of no income at all. I’m still disabled but out of fear of losing my chance at getting any money at all I went with the judgement under the premise that I can go back within six months to refile for SSDI since I agreed to a closed disability time frame. So I was awarded around $30K and now I fear that MetLife is going to state that I have to pay them back everything. What happens if I don’t pay them back? I have been working on getting my debt cleared and pay back some school loans and think that I’m going to file backruptcy. I’m not sure what to do or who I can go to for help.
My husband had a loss of license insurance policy, had an injury and lost his license. After having paid premiums for seven years, the loss of license insurance co. refused to pay benefits to cover our expenses until he signed a paper stating he would file for Social Security Disability. He did get the disability after two years and now the loss of license insurance wants his back payments. Can Social Security or Veterans benefits be guaransheed if he is sued and loses? I have read these benefits can only be taken by student loans and government issues. What can happen to him if he refuses to give the back payments to this company? Could he be arrested?
Laura,
The issue with the overpayment is a civil matter which could not result in an arrest. He can be sued and he could be responsible for attorney fees in addition to the back SSDI benefits. This all makes the assumption that his disability gives them the write to seek an overpayment.
Kelley,
I don’t know what state you are in, but it does seem that the statute of limitation has run and they should be prohibited from collecting anything from you. You should demand that they prove what you owe them for. I doubt they will sue you to make a recovery. You should contact a collection attorney to see if they are violating any of your rights by seeking collection 8 years later.
PG,
If you were awarded SSDI for a period of time that cover the same time period you received MetLife coverage, then MetLife may seek an overpayment. If you are no longer dealing with MetLife, then it is unlikely they will ever know that you received the 30k from SSDI. If MetLife seeks a repayment, they may have the right to sue you in order to seek repayment.
I got very sick and began receiving short term disability in 2009. I then was approved for long term diability in 2010. In 2011, when I was 70, I applied for and began receiving my social security retirement income, which was retroactive 6 months. I needed this money to assist me due to the reduction in income. I notified the disability insurance company, who now says I owe them several thousands of dollars because social security retirement is a deductible source of income. How can one’s social security retirement income be an offset when it is my money, no one contributed to it but me, and it is based on the income I earned over the years? If I had not gotten sick and was still working, I would still be entitled to it while collecting a paycheck; the employer would not offset. I waited until I was 70 to collect because of the enhanced benefit option the the SSA offers if you wait. Please help me understand.
Hard Worker,
The language of your disability insurance policy defines what types of income are setoffs. In most group disability insurance policies, any type of social security income is considered an offset. If your policy does not have such language, then the disability company is wrong to deduct your social security disability retirement benefits.
I have a group STD and LTD plan with Unum. I was awarded STD, they started paying and stoped 4 weeks short. I was then approved on the LTD (STD never finished paying). 45 days into LTD they stoped paying. I have been turned down twice for SSD and I am currently waiting on the appeal. I am also waiting on a court date for a case against Unum (both STD and LTD). They have called after 18 months, now wanting to know if I will settle the case out of court. I was thinking I might. Listening to numbers, I hear that if I go to court the judge will only reinstate (and figure back payments) on the off set amount (a shortened payment by my entitled SSDI), which i have not been approved for. Is this right? Or is this a trick to get me to settle for less? The amounts STD and LTD were paying were not offset amounts. How can this change just because they want to? I understand paying back the lump sum if and when it happens but before? Would a judge do this? And I am told if SSD does go broke in 5 years the LTD will still only have to pay the offset amount (never having to make up what SSD can’t pay). Am I being lied to by more than Unum here?
Gregory,
I am also dealing with Lincoln Financial like Kristina above. They are demanding I pay back money to them that I never received. My social security did not activate until my child was an adult. Lincoln claimed I was eligable for dependent pay, so I conctacted the Social Security department. They told me I was not eligable because she was 18, but that she could get the money. So she went in and applied and was paid back pay for the time of my disablility until she turned 18. Not a penny came to me and she doesn’t even live with me. Lincoln has played the delay game now as the “review” my “very unique” circumstance and after almost two months told me that the language of the policy states I must repay this money that I never received nor have any access to! They encouraged me to “appeal” it, a common delay, deny, hope they die tactic. They claim there is Michigan case law for this, so before I start incurring further attorney fees, is this true? Is there some law that says you have to pay back money that was never paid to you?
Thanks.
Stupid,
If you have not been awarded SSDI, then it would be unusual for a judge to enforce an offset. Some policies allow the disability carrier to estimate the SSDI award and offset in advance. If you are in litigation already then a settlement usually involves a buyout of your policy. Please call us if you would like to discuss your claim.
Marie,
The answer to your question depends on the setoff language in your policy. If your policy states any SSDI benefits you or your dependents receive, then Lincoln Financial may be correct. It is unfair. If your daughter is not claimed as your dependent then the carrier may not be entitled to the offset. You should submit an appeal in a timely manner in order to preserve your legal rights to sue them.
I became ill in late November 2008, and went on LTD in May of 2009. Unum, my LTD carrier, ended my coverage this May 2011. I am appealing their decisions, but want to know if I am awarded SSDI will I need to repay Unum because they terminated my LTD?
Faye,
If you received SSDI benefits for the same time period that UNUM paid you, then you would technically be required to pay UNUM back a portion of your SSDI award.
I have been on long term with MetLife since Oct. ’07. More – I am expecting a lump sum payment from workers’ compensation. Do I have to pay it all to MetLife at one time or make payment arrangements?
Rochell,
MetLife has the option to allow you to enter into a payment plan. You need to ask MetLife.
I was awarded a back-pay and Hartford has waited four months and sent a letter wanting back pay. I want to know how these insurance companies can keep getting away with this? They can garnish my disability check? If so, why did I pay out of my check every month? Should it not be unlawful for them to do this? I need help, I can’t afford to pay them back. I have already paid bills, can I not fight this?
Emily,
Your disability policy should contain specific language explaining what Hartford can or cannot consider as a set-off. Unfortunately, almost all group disability insurance policies contain language which allows them to offset your disability check with payments your receive from social security disability or other potential sources. You may want to ask Hartford for a payment plan if they are entitled to the money.
I am like all the rest – paid my social security for my whole life and bought short term and long-term disability insurance. I became ill from the trigger of the stupid “canned” air everyone in offices love and despite my request that the person across the way and to his supervisor that it not be used. I now have 33-40% reduction in lung function and am permanently disabled. Guardian Disability is a company from whom group disability coverage is provided. They are wanting the entire social security payment $18,000. However, I was never provided with a copy of the contract until recently. The full terms and conditions of the policy were not provided to me. Additionally they will received the benefit of my years of having paid to SSA to the tune of their reduction in their obligation by over 55%. Since the premium was based on income – shouldn’t I have benefit of the reduced premium and return to me of the 55%? Is there a cap over which they cannot take it all? With the government struggling – does the public know this?
D. Flanagan,
The government is aware and they have taken no action. There is no refund of premium available in your situation.
I understand overpayment, deductible source of income etc., but my question is this: can the LTD company basically force us to apply for SSA benefits? We are philosophically opposed to having the government pay for something that private insurance is contracted to cover. Its MetLife and the representative ALLSUP. The constant contact and pressure to get off MetLife and over to SSA disability benefits is driving me crazy but I don’t want to lose the LTD coverage either.
Lennie,
MetLife cannot force you to apply, but they can deduct an estimated amount each month that you would receive from SSDI. I have seen them do this many times.
What happens if you do not report lump payments to Ltd. Co.? Will they find out?
Broke,
If you are asked about information and lie to an insurance company then you could be subject to insurance fraud criminal charges.
A friend of mine is on Social Security Disability and she is thinking of filling a lawsuit for personal injury due to an accident. Would her SSD income be effected if she gets a settlement, and does she has to report that settlement by law? Thanks.
I am receiving LTD from Unum, this month is the fourth month for LTD. Unum sent me a letter stating I am getting retirement money, so I owe them 1,700 dollars. Unum has suggested I sign up for SSDI; so I signed the option A or B form, stating that I will pay Unum any overpayment that I get from SSDI. In the letter they sent me they included the form about giving them any overpayment after I get SSDI. I did not get any overpayment from my retirement fund, so can I repay when I get my SSDI award?
Darlene,
You can negotiate a payment plan with UNUM to discuss repayment of any money owed. You should look at your policy closely as UNUM may not be entitled to an overpayment for your retirement money.
I am receiving LTD from Prudential. They require that I apply for SSDI and want to apply any retroactive award as an offset to benefits they pay me. Question is, that if I have an attorney assist, I will owe them about 25% from the award as fees. Will Prudential want 100% of the retroactive award, or will it be 100% less the attorney fees?
Many thanks.
Dennis,
Prudential will give you a credit for the social security disability attorney fees that you will need to pay. Your SSDI attorney fees will not exceed $6,000. So if you are awarded $20,000 from SSDI and then the attorney fee is $6,000, Prudential would only be entitled to $14,000.
My husband just started receiving SSDI; therefore I have applied for SSDI for myself and our daughter. He also gets LTD benefits so LTD will be taking back part of what they paid and they will decrease what they pay accordingly. I signed my daughter’s SSDI application obligating myself to do as the federal government outlined (if I don’t, it’s felony). One of the bullet points said that I MUST use child’s benefits for needs of the child or put it away for the child. If they find out it’s not used appropriately they will immediately stop paying.
Doesn’t this statement from SSDI prevent LTD from taking her benefit away?
My long term disability insurance company called and said I get all my social security settlement money and I do not owe them back pay. He said he calculated it and they were 100% sure I’ll get it. I asked multiple times if he was right and he said yes, then a day later he calls and says I owe him the back pay. Is that money mine through a verbal contract?
B,
If SSDI is paying child dependent benefits as a result of YOUR disability and not your husband’s, then the disability carrier should not be entitled to an offset for the child benefits that you receive.
Nate,
In the world of disability insurance claims, there is no such thing as a verbal contract. You should speak to a supervisor at your disability carrier and get everything in writing.
Can my client sue for a bad faith claim against her LTD carrier?
The carrier claims they are owed over $60,000 in payments and have estimated her SSDI award even though I have sent communication requesting an appeal of the overpayment decision and am awaiting the award letter from SSA stating her award was $18,000. Further, my client selected to receive her LTD benefits with no reduction at a time when she was on pain medication and practically forced to select that option by the LTD representative.
Is there any merit to a coercion defense/claim when filing the appeal?
Margaret,
If this is an ERISA governed disability claim then there is no right to bring a bad faith claim. You should file a claim with the department of insurance in the state where the claimant resides.
I am getting LTD. They made me apply for SSDI. While waiting for approval, can I apply for social security retirement? I am 62 years old. I understand there may be a long wait for SSDI. If I get the SS retirement, I know when SSDI comes through, I will get the SSDI only. What I would like to know is, if I get SS retirement, will LTD still pay me also, until I get SSDI? I am worried that I cannot get the amount from the LTD carrier, also.
Hello!
I’ve been collecting LTD through SSDI and MetLife for 14 years. My husband recently became disabled as well and now our daughter collects on his work record. I do not believe that dollar amount should now count as a MetLife deductible for me, since it is considered from him.
I have also gotten an increase in my SSDI due to his record. Would this money be counted as deductible income by MetLife? I am well over the 70% guaranteed income with this added income.
Not sure if I should contact them or let it be.
I was injured at home in Jan. 2011 and went onto STD, then LTD with the Hartford in April. I tried to return to work by aid of wheelchair and walker but was told, several times, I could not return to work until I could walk without assistance. I was allowed to work from home up to 18 hours a week, until I was terminated in Aug. 2011, due to longevity of injury. The part-time income did not affect the LTD.
Today I got a call from the Hartford asking if I had applied for SSDI (yes), said she was sending a form for me to sign, stating I would pay them back all I had received since July 2011 once I get the SSDI. I do not have a copy of the LTD insurance policy, since employer kept the handbook that had all this info in it.
Do I need to sign this paper and return, do I have to pay them back $2400 a month, retroactive to July 2011, once I am awarded SSDI? I have filed with the EEOC, handicap discrimination, but have not heard back about a hearing date yet. I am so lost here. Please give me some general advice about Georgia law on this.
Dar,
You will likely get more money if you are approved for SSDI rather than SSI. Either way, the disability company will offset your monthly check. You should try to get the SSDI first.
Smalin,
If your daughter is no longer collecting from SSDI as a result of your SSDI, then MetLife may not be entitled to the offset for her any longer. They will offset the SSDI from his policy if your daughter is receiving payment as a result of his SSDI approval.
JP,
You need to send a request to your employer requesting a copy of your LTD plan documents. If the policy states that Hartford has a right to reimbursement for SSDI, then you will need to pay back any SSDI funds you receive for the period that coincides with LTD payments. If you don’t sign the paper, Hartford may start to offset your monthly benefit check.
My question is: I was billed bi-monthly by employer and had to pay for my LTD & other insurance after-tax (out of pocket) after the accident in order to keep my insurance in effect. Does that make it exempt from Hartford being able to claim overpayment if I get approved for SSDI?
JP,
Unfortunately, you will not be exempt from an overpayment.
Hello,
I’ve been receiving Social Security Disability and LTD from my company and Aetna deducts the amount I receive from SSD from my LTD check. Now, I got a letter from SSD saying that I will get 3.6% increase in pay. Can Aetna deduct the increase (COLA) that I will get from SSD from their checks? If so, it means that I will have to live with whatever the amount they set up for me for years until the SSD catches up with their payment and then Aetna doesn’t need to pay me anything? Please let me know, it seems unfair that when I get a COLA, Aetna deducts the amount from their checks, which will end up with nothing to pay to me. Thanks.
Betty,
The answer depends on what your Aetna disability policy says. Some policies do not offset for COLA increase from SSDI. Check the language of your policy. If the policy includes COLA increases, then your analysis is correct.
I received LTD from Prudential and I filed for my social security retirement in Texas and was awarded it at the amount of 2034 dollars. So when I filed for SSDI from the state, I was awarded it and it made my check go up 500 dollars. Prudential cut my LTD check off because it says my social security check is an offset. What I am saying is, why do they include my retirement instead of the 500 dollars disability extra a month that I was awarded?
Perko,
Some Prudential policies have language that includes any retirement benefits as an offset. You need to check your policy.
I have the same problem as most: paying back the LTD insurance, MetLife. Can they actually garnish my only income, SSDI, if, for any reason, I did not, or could not, repay them?
OMG, I am so confused! My husband works for AT&T and was on STD for one year after a car accident and is now been approved for LTD and AT&T has a company that is filing for SSD for my husband. His accident was in Jan. 2010 so he is eligible for SSD since July 2010.
If approved, does he get backpay or is that gonna have to be paid to someone for offsetting his STD and LTD?
Tony,
As you can see from the extensive comments above, the answer is unfortunately yes.
Mary,
If approved for SSDI he may need to give money to AT&T. You need to read his policy.
I had to leave Verizon Wireless do to seizures & anxiety. VZW used MetLife for the company’s LTD insurance. MetLife approved LTD for 2 years from 11/09/09 to 11/09/11. MetLife ended my LTD benefits early on 2/1/11 claiming that I had no issues and could return to work. A specific example, they claimed that I could drive to which all my medical doctors had said no, due to the seizures. An issue that fell under the scope of the policy and was used in my SSDI hearing.
MetLife had a requirement that I file for SSDI and I did using their approved law firm Allsup. I was just awarded SSDI benefits and MetLife is now claiming they should be reimbursed for 11/09/09 to 2/01/11 benefits. Is this correct, since I believe MetLife refused benefits to me, the policyholder with a legitimate claim, and acted in bad faith?
Clay,
Technically MetLife is entitled to claim an overpayment for the same months that they agreed you were disabled. Since they have stopped paying you, I am not sure they will take any action to come after you for the overpayment money. I am assuming you appealed your disability denial? You may be entitled to additional long term disability benefits, which could offset any amount you owe to MetLife.
I have been receiving LTD benefits from MetLife since Feb. of 2009. I was just recently approved for SSDI benefits. I was previously told I would have an overpayment amount to pay to them when/if I was ever approved for SSDI after appealing up to the ALJ level, which I was told is a “requirement” after 24 months of LTD. However when SSDI gave me my benefits amounts, I was told I would tentatively receive a gross amount of $1,450 monthly. And after Medicare reduction of $115, I would now net $1,335 monthly. But from MetLife I have received an amount of $1,317.42. In this case where both my net and gross exceed the amount I’ve been getting from LTD, would I actually owe MetLife back pay? As well, I obtained Binder&Binder for my ALJ appeal. Their fee is 6K, will that also be taken into consideration? Finally, MetLife has not been my employer’s insurance/disability since Jan. of 2009, but because I was out the entire year of 2008 and returned for only 5 days in 2009, I fell under the MetLife umbrella before the insurance transition was complete. Would that be another reason to {not} have to pay into back payment? Any help would be greatly appreciated, as Everyone within MetLife talks in circles.
First I like to say that UNUM is the worse insurance company, EVER! They treat you horribly. I don’t know how their employees sleep at night. I have been receiving LTD since Aug. 2010 and was approved for social security disability Oct. 2011. UNUM lowered my payments from $1,200 to $134 and recently informed me I will no longer receive any money from them. I informed UNUM that I was approved and they immediately asked for repayment. I recently paid medical bills and payments towards my living expenses in order to bring myself up to date. UNUM has been calling me demanding I pay $17,800 which I only have $5,000 left from my retro from social security disability. My question is, can they send me to collections if I send a lump sum of $5,000 and then make monthly payments of $100?
Chante’,
The $6,000 SSDI attorney fee you paid will be deducted from any amount you owed to MetLife. It seems that your SSDI amount will wipe out any payment from MetLife. MetLife will seek an overpayment for any funds that were paid to you by SSDI. You are required to pay MetLife back if your policy contains offset language.
Frustrated,
If you contact UNUM and attempt to work out a payment plan, you can probably do better than the proposal you suggested. Good Luck!
I have long term care with MetLife and have never filed a claim, but I have total kidney failure and am getting SSDI $1579.00 a month and VA 100% $2800.00 and not working – sick everyday. Should I continue with MetLife or stop it and should I request a claim for kidney failure? I know they will offset the SSDI, but what about VA, I need additional income because of this disease?
Donald,
We cannot answer your question without reviewing your policy.
I have been on disability for 18 years with RA. I receive SSD and LTD through my former employer. My employer has had various insurers through the years. Our new insurer, Prudential, sent a letter requesting beneficiaries sign authorization form for all medical records, labs, hospitals, X-Rays, health care professionals, pharmacy, health plan and health care provider who have provided treatment, payment or services to me or on my behalf to disclose my entire medical history concerning me. They want to know if I smoke, drink or take drugs. They want it all but psychotherapy notes. OK, I can do that. No problem. Prudential also wants authorization to contact the social security administration or other persons or institutions to provide any info, data or records regarding social security administration, credit, financial, earnings, activities. If I don’t sign this authorization Prudential may not be able to process any payments to me. My policy states I must release medical records. There is no mention in my policy to release any thing else! I don’t think I should sign a form for my insurer to look at my credit report, bank statement and whatever other financial records they say they “need” for me to receive benefits. What do you think about the financial stuff?
Pam,
Great question. When I have my clients complete these General Authorizations, I usually have them cross out request for records relating to credit, financial, tax returns, etc. I tell the disability carrier that if there is a specific non-medical record they are looking for, then they should specifically ask us for it in writing.
My LTD carrier has an offset clause for dependent benefits and I’m OK with that. If my SSDI claim is approved they will reduce my benefits by the SSDI amount received for me and my children. My son’s Dr. recently advised me to apply for SSI for him as his migraines are severe enough to keep him out of school, activities, etc. So my question is, if he is approved for SSI for his own condition and his benefit amount is more than the dependent benefit, can my LTD carrier offset this amount? Or, since his will be an individual application aside from my own will it be exempt from the offset? Thank you.
D.P.,
If your son received SSDI benefits due to his own disability, and not yours, then the disability carrier could not take an offset.
My LTD made a point to state they approved my claim for my back problems and not my depression. SSDI was approved mainly due to my depression. Is my LTD company still entitled to the SSDI back pay?
Also, I have a pending lawsuit against a driver in an auto accident who hit me while I was recovering from back and neck surgery and made it bad again. This will mostly be pain and suffering and not lost income as I had already been laid off from work for taking medical leave. Is the LTD company entitled to anything I might get from this lawsuit?
I have been on long term disability for a year through my employer. I tried for a year to get back to work but failed. I was just approved for disability retirement (Dr. states totally and permanently disabled ) through the benefits office. They back dated my retirement date to one year ago when I started long term disability income. I have a 401-A. Can the long term disability company pull the plug on my income AND claim? I owe them all of last year’s income back because my retirement date was backdated to the point my long term disability benefits started. I’m 51 and in terror since I don’t have much in my 401. Their lawyers are trying, but have not yet gotten me approved for SSI so they can get that backpay but I’m thinking this may be lose-lose for me. Your thoughts?
Why do you have to pay your Ltd. insurance company back any money when you paid for the service or benefits out of your paychecks while working? This is money you deserved. Why should they be allowed to get any money that you get from SSDI? Why should the disabled person be out any money?
Bill,
If you get paid SSDI during the a period of time that is the same when you were paid Disability Insurance Benefits then the disability company may seek an overpayment. They can only seek an SSDI overpayment if your disability policy gives them the right to do so.
Lost,
You are only required to pay back disability funds if your disability insurance policy gives the disability carrier the right to request a repayment. The right to a repayment of disability benefits must be contained in the language of your disability policy.
Dear Lost,
I believe my employer paid the premiums. I have to pay taxes on it and these other concerns are paramount. I know they can get my SSDI check and then offset that future payment. I can live with that because my income would not change. I can’t survive a hit to my puny 401 A.
Barbara,
You need to check the language in your policy. The SSDI funds will likely need to be paid back to the company. The proceeds of an auto accident related to lost wages only may be an offset.
I received 5 months initial settlement on SSDI – I promptly contacted the insurer and told them. They advised me of the amount I would need to reimburse them. I sent the check and it was returned to me 6 weeks later asking me for the Claim Number. I was finally contacted about 3 months later asking where the money was – I told them it was returned to me. I then wrote the claim number on the check and their letter and sent it back to them. They sent the check and their letter back to me with no explanation. Now about 6 months since this started they are calling me for the money again and threatening to stop sending my monthly benefit. Am I required to send the money to them, since I have already sent them the money twice and they don’t cash the check?
Susan,
That is a bizarre story. Which company was dumb enough to do this to you? If your policy entitles them to an SSDI overpayment, then you need to send the money.
OK, from the posts these insurance companies are a royal pain. In our case it is the Hartford, total jerks. We ended up sending them the overpayment after being approved for social security disability. After about 10 months we received a rather large amount because we were not paid the correct amount. Now they are saying the amount our minor daughters receive can be used for offset. Is this correct?
My long term disability just ended. I was wondering if long term disability pays into unemployment since I have to pay social security, medicare and taxes on my disability benefits.
My long term disability company required that I apply for SSDI and give them any settlement I received. I understand this and complied. However now they are trying to get benefits that my daughter would have received for the time I was on disability and she was a minor. She is now over 18 and is set to receive $5K. Can they legally require that she return that money?
My wife was just approved for SSDI and has received her lump retroactive payment. Her long term disability company says that that money belongs to them but we have been told that we have to pay taxes on that money. Is this true? Shouldn’t we pay the taxes out of the money and then give them the remainder? No one seems to be able to answer this question for us. Thank you.
John,
Please see the following Frequently Asked Question regarding the SSDI issue for minors at Can a disability insurance company claim an overpayment for social security disability benefits payable to a child as result of the parent’s disability?.
Kelly,
There is no relationship between unemployment and long term disability benefits. Most people receiving unemployment are not eligible for disability insurance benefits.
Can 401 money be an offset if you are disabled and “eligible” to receive your 401 money?
Say you get $2150.00 for LTD and Social Security Disability awards you $1700. Don’t you still get the 60% from your LTD insurance company? My wife has been disabled from 2001 and she gets 60% of her salary from LTD and $900 from Social Security Disability.
Chris,
The SSDI payment will be subtracted from the LTD monthly benefit amount.
Bill,
It can be if your policy specifically addresses 401k benefits. You should ask your carrier for clarification in writing.
I do understand that the majority of LTD insurance companies have policies in place that require any amount given as an overpayment for social security disability benefits payable to a child as result of the parent’s disability be given back to the insurance company. My question asks that if my daughter who is no longer a minor and I have no financial control over be required to give back the money that was deposited into her bank account. What if she refused? How could I be held legally responsible for this?
Concerned,
Please see our FAQ on this exact issue at: Can a disability insurance company claim an overpayment for social security disability benefits payable to a child as result of the parent’s disability?
Please Help,
I get this question all the time and I agree with your thought process. You should send a letter to the disability company and tell them your situation. I think the argument you are making only makes sense if the disability insurance benefits your wife was receiving were tax free.
Concerned,
The disability carrier will not require your daughter to give back the money. They will hold you as the parent responsible for paying any overpayment regardless of the bank account in which the SSDI money was deposited. Your daughter received the money because of your disability, therefore your policy may make you responsible for the overpayment.