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Can your Long Term Disability Insurance Company require you to turn over your Social Security Award?
Hi I'm Marc Whitehead, a Board Certified Disability Attorney.
Many claimants apply for Social Security Disability benefits around the same time they apply for LTD benefits
Claimants at this point are given a choice by their insurance carrier
A claimant can chose to have their carrier estimate how much that SSD will pay them
The insurance carrier will then deduct that estimate from the claimants monthly LTD benefit.
However, most claimants chose another option.
Which is to pay back the Social Security Disability offset in a lump sum.
So that the claimant will receive the full LTD monthly benefit.
Because it can take as long as 18 to 24 months to receive a Social Security Disability Award.
a claimant SSD benefits can add up to several thousands of dollars
Once the claimant receive the SS award and back benefits
The insurance company will want to recover the full amount of the back due benefits.
Because the claimant has been unable to work and has been getting only 60% of their former salary
Many claimants spend their back SSD payments to pay their bills.
If a claimant can't pay back the full amount in a lump sum, sometimes the insurance company
Will hold back the entire LTD monthly benefit towards the amount of the SSD benefits that the claimant owes.
This problem is compounded when the SSD award arrives just as the claimant hits the
Any Occupation definition of disability at the 24 month mark.
Because the insurance company may cut off benefits when the policy changes.
Leaving the claimant owing a large over payment.
This topic is discussed more in my free ebook, Long Term Disability Insurance Policies, How to Unravel the Mystery and Prove Your Claim
Visit www.disabilitydenials.com for a free downloadable copy
or call 1-800-562-9830 to discuss your particular Disability Insurance issue.
I'm Marc Whitehead. Thank you for watching.