Question
Can UNUM refuse to add my son's SSDI benefit to my check when he stops receiving it?
I have been long-term-disabled since 1996. Recently my boy turned 18, and no longer gets SSDI. I called UNUM to see if his benefit amount would be added back to my check. They said NO because they didn’t deduct for the Cost of Living increases we got from SSDI over the years that it comes out in the wash. WHAT!? So, you get 70% of your income with the assumption you would never get pay raises?
Answer
Michael, That does not sound right. Typically any cost of living adjustment to a deductible source of “other income” is not subject to offset by the insurance carrier. As such, Unum should only be entitled to reduce your benefit by the initial award amount from the SSA. Since your policy is from 1996 there might be language to the contrary. I would suggest you obtain a copy of your LTD policy and review the language.
