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 436 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.
- A Liberty Life Disability Benefit Denial is Reversed after ERISA Appeal filed by Attorney Alex Palamara of Dell & Schaefer
- Cigna Overturns Denial of LTD Disability Benefits to Off Shore Oil Rigger Suffering From Post Traumatic Stress Disorder
- Mass Mutual Approves Long Term Disability Benefits For an Oncologist That Suffered Stroke
- Hartford Settles Disability Claim of 60 Year-Old Account Executive After Terminating LTD Benefits
Read what our clients say about us.
- Ken A. DC ·First of all, may I say this: If you are a professional and find yourself in the unfortunate position of having to file a claim against your disability carrier - Do not...› continue
- Jodi C. ·Despite the fact that I work at a law firm who handles different types of cases, I had an incredibly difficult time finding a firm that would take my disability case...› continue
- Hugh ·Dear Cesar, Thank you very much for taking the time to talk to me today about my sister. I want to say how refreshing it is to speak to someone who so obviously has...› continue