Will your COVID-19 Stimulus Money be an Offset to your LTD Benefits?

Lately we have had a common question continually arise from our clients and even potential clients. As everyone on claim and receiving disability insurance benefits knows (or has unfortunately learned while on claim), insurance companies reduce the amount of money they pay each month if the claimant is receiving certain other source of income. Most often, insurance companies are able to reduce the amount of money they pay due to the claimant receiving Social Security Disability Income Benefits.

COVID-19 Stimulus Money - LTD Benefits Offset?

Due to the COVID-19 pandemic that is affecting the United States and World and its great impact on the economy, Congress has responded with a $2 trillion dollar stimulus package, which is formally known as the Coronavirus Aid, Relief and Economy Security (CARES) Act.

With this Act, the federal government will pay $1,200 to individual taxpayers ($2,400 for co-filing married couples), with an additional $500 per qualifying child under the age of 17, with certain limitations or reductions depending on your income (For more specific information regarding the amounts to be paid, see recent news articles on the subject or contact your local government representative).

It has been stated that those receiving disability insurance benefits are eligible to receive Stimulus Funds. As such, many individuals currently on claim will be receiving additional monies from the Federal Government in the near future.

This has left many people asking: Will the Stimulus Funds be an Offset to my Disability Insurance Claim?

In all likelihood, the answer is NO.

Over the course of the last few weeks, we have reviewed multiple policies with multiple insurance companies. Most policies require that the other income benefits you receive must be as a result of your Disability or the Sickness or Injury that caused your Disability. In policies with this or similar language, the argument can be made that the Stimulus Money is not being paid due to your Disability and thus cannot be an offset.

Meanwhile, other policies are written with vague language whereby an insurance company could potentially make the argument that the Stimulus Money could be considered “other income benefits.”

For instance, Hartford’s policies often state that other income benefits include “The Amount of any temporary and permanent benefits to which you are entitled under any:

While an argument could be made that the Stimulus Money could fall under some of those subsections, we do not believe that any insurance company will attempt to make the argument that this Stimulus Money should be an offset.

The main reason we are fairly confident that the Stimulus Money will not be an offset (if they could even make the argument that it should be) is that the insurance companies would be creating a Public Relations Nightmare.  It would look terrible if insurance companies attempted this as they would then in effect be the beneficiaries of this Congressional Act. Insurance companies would essentially be stealing money out of the pockets of those who Congress intended to receive money.

Once word leaked that this was occurring (and you can be assured that Dell & Schaefer would get this to every major news outlets as well as Congressional Representatives), Congress, the Media and our Firm would then come down hard on the industry which would impact its business and stock value. Thankfully, we believe that the insurance companies do not have any intent to offset this money and claimants should be assured that they should be able to keep every Stimulus dollar received.

However, should your disability insurance provider attempt to offset your Stimulus Funds, please contact us immediately as we would love to fight each and every insurance company that attempts to do so.

Comments (2)

  • The Hartford is absolutely using Covid stimulus unemployment as an offset in LTD claims they’re doing it to me right now!

    Roller Nov 7, 2022  #2

  • Why can’t tine same be said for the $300 added on to unemployment?

    Patrick Z. Mar 22, 2021  #1

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Do you work in my state?

Yes. We are a national disability insurance law firm that is available to represent you regardless of where you live in the United States. We have partner lawyers in every state and we have filed lawsuits in most federal courts nationwide. Our disability lawyers represent disability claimants at all stages of a claim for disability insurance benefits. There is nothing that our lawyers have not seen in the disability insurance world.

What are your fees?

Since we represent disability insurance claimants at different stages of a disability insurance claim we offer a variety of different fee options. We understand that claimants living on disability insurance benefits have a limited source of income; therefore we always try to work with the claimant to make our attorney fees as affordable as possible.

The three available fee options are a contingency fee agreement (no attorney fee or cost unless we make a recovery), hourly fee or fixed flat rate.

In every case we provide each client with a written fee agreement detailing the terms and conditions. We always offer a free initial phone consultation and we appreciate the opportunity to work with you in obtaining payment of your disability insurance benefits.

Do I have to come to your office to work with your law firm?

No. For purposes of efficiency and to reduce expenses for our clients we have found that 99% of our clients prefer to communicate via telephone, e-mail, fax, GoToMeeting.com sessions, or Skype. If you prefer an initial in-person meeting please let us know. A disability company will never require you to come to their office and similarly we are set up so that we handle your entire claim without the need for you to come to our office.

How can I contact you?

When you call us during normal business hours you will immediately speak with a disability attorney. We can be reached at 800-682-8331 or by email. Lawyer and staff must return all client calls same day. Client emails are usually replied to within the same business day and seem to be the preferred and most efficient method of communication for most clients.

Dell & Schaefer Client Reviews   *****

Mary R.

I first started working with Dell & Schaefer after two failed back surgeries forced me to stop working. I was the major breadwinner of our family and had a very generous compensation package that included long term disability. I was certainly glad to know that I had the long term disability policy to help us during this major change in my family’s life. I was surprised to learn that long term disability means something very different to the insurance company (MetLife) who held my policy. They wanted to place an 18 month restriction on pay out and wash their hands of me. Hardly “long term”.

I hired Dell & Schaefer to fight for me and that they did. They were well schooled in the tactics of insurance companies and they expertly navigated the many barricades the insurance company placed in front of me. They were extremely knowledgeable in all areas of the law and quickly identified a course of action. They were fair and sensitive with my personal concerns and I always felt that I had an advocate on my side. Their experience proved invaluable as they were able to successfully argue my case and win my long term disability case, securing my benefit and my family’s income needs. And they continue to support me, as insurance companies continue to find ways to challenge the validity of your claim even after the initial decision is made in your favor.

Dell & Schaefer handles everything for me. This is an extraordinarily difficult thing I have had to endure. Without this money, I have no idea how my family would have been able to survive. Insurance companies can be brutal on individuals and when one is at their most vulnerable as I was, it is critical to have a knowledgeable and powerful attorney on your side. I like the fact that I don’t have to worry about anything and that everything is handled for me by Dell & Schaefer. I am glad to recommend Dell & Schaefer to anyone who needs a strong advocate on their side.

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