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 616 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 Fedex Employee
- Dell & Schaefer gets Cigna to Reinstate Long Term Disability Benefits for Former Maryland Teacher Suffering from Crohn’s Disease
- MetLife Reinstates Disability Benefits to Attorney on Appeal
- Administrative Appeal by Dell & Schaefer forces Principal Life Insurance Company to Reinstate ERISA Long Term Disability Claim of Former Healthways, Inc. Employee
Read what our clients say about us.
- Annissa M. ·Before I started working with Stephen, I was unsure how I was going to navigate the Long Term Disability process. I had already been denied once and was very...› continue
- Sheila W. ·I would like to make sure that whomever Alex's boss is knows how good he is. He was always was so kind and I felt like he would take good care of me. His opening...› continue
- Janet ·I worked with Rachel Alters, who was very knowledgable about ERISA, my health condition and the best way to present information to my private LTD company. Being...› continue