Question
What amount is New York Life obligated to provided after dependent benefits end?
My daughter is turning 18 and her social security dependent benefits end. New York Life is required by the policy to increase their monthly benefit amount for dependent benefits. The policy allowed for COLA increases in social security without reducing New York Life's payment. The policy allowed for 70% of my pay based on my pay amount when I became disabled. Therefore, the New York Life disability monthly payment was based on the social security amounts in the year I became disabled and has not varied. I am seeking to understand what amount New York Life is obligated to provide after the dependent benefits end. For example, if the dependent benefit at the start of my disability was $1000 a month, after COLA adjustments throughout the years the current dependent benefit is now $1200 a month. The policy allowed for 70% of my pay at the time I became disabled. Will New York Life be obligated to pay the $1000 or $1200 more a month once the dependent benefits end?
Answer
Lynda, under your scenario, the likely outcome is that New York Life will now be obligated to pay the amount that they were offsetting for the dependent benefits. If they have not been offsetting for the COLA increases to the dependent SSDI benefit, then it sounds like you will now be receiving $1,000 more per month. Ultimately, the language of your LTD policy will govern. We always offer a free consultation should you want to investigate this more and speak regarding this issue and your claim.
