If you have found yourself asking the question “how does Long Term Disability work with social security disability?” Keep reading to learn the answer.
Over the years, we have received the question “how does long term disability work with social security disability?” many times and counseled a large number of people on the interaction of Social Security benefits with Short Term Disability or Long Term Disability benefits. Often the consultation is advice only because I am only confirming what they have already been told, i.e., the insurance company is allowed to deduct Social Security benefits against Long Term Disability benefits. Many express dismay at learning this because they thought their Long Term Disability benefits was over and above the Long Term Disability. Unfortunately, this is not the case as these group policies routinely have a clause allowing them to make this offset, a right that has been upheld by the courts. Let me note that if you have a private Long Term Disability benefits policy, there usually is no such offset.
This issue is part of the reason I am of the opinion that these Insurance Policies really mislead employees into believing they are well covered in the event of disability when, in fact, they are not. In addition to the Social Security offset, there are many other types of offset, including retirement benefits, workers compensation benefits, personal injury awards, and the like. Coupled with these reductions in the amount of benefits, the insurance companies also have the benefit of the egregious claims process which Congress has set up. In many instances, the premium paid would be for nothing except the insurance companies wisely put a $50.00 or $100.00 minimum benefit in the insurance policy so it is not determined void ab initio.
If you have received Long Term Disability benefits for a period of time before the Social Security benefits are awarded, you may find yourself in
an overpayment situation as a result of the Social Security offset. We have counseled many clients through this difficult process. We have worked with clients to ensure that the Insurance Company is entitled to the claimed offset and to ensure that the calculations are correct.
If you have any questions about your Short Term Disability or Long Term Disability claim, please give Herbert M. Hill, P.A. a call and we would be glad to answer any questions you may have. If you would like, after discussing your case, we can set a conference. In most circumstances, that conference would be free of charge but in no circumstance would you be under any obligation to hire me nor would you feel any pressure from me to do so.
Herbert M. Hill, P.A. is a law firm located in Orlando, Florida with a practice extending throughout the state of Florida. While the vast majority of cases handled are for disability insurance benefits, areas of practice include employee benefit claims of all sorts. The firm handles any claims arising under the Employee Retirement Income Security Act (“ERISA”) for disability benefits, medical benefits, retirement benefits of any sort, including pension, 401k, termination agreements or the like as well as claims arising under private disability policies.
