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 718 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.
- Dell & Schaefer Successfully Appeals Denial Of Benefits To Former Excel Energy Employee
- Mutual of Omaha Reinstates Benefits of Business Development Manager after Appealing the Termination of Her LTD Benefits
- Attorney Alex Palamara Helps Correction officer to Win Cigna Disability Appeal
- Disability Benefits Reinstated: Dell & Schaefer Appeal Gets CIGNA to Admit its Decision to Deny was Wrong
Read what our clients say about us.
- Jeff T. ·The best advice I received when I started the process of filing my disability insurance claim was to hire the best, most experienced disability insurance lawyer...› continue
- Beth W. ·My experience with attorney Stephen Dell and his ace paralegal, Merlin Bryan, was first rate. I am an attorney who found herself disabled at a relatively young age (52)...› continue
- John H. ·From the initial consultation through a successful resolution of my disability case, Alex and the team were professional and compassionate. The total team worked with...› continue