Offsets of Long Term Disability Benefits And Social Security Disability Benefits
One issue that comes up in both Short Term Disability and Long Term Disability benefits is the correct calculation of the benefits due. This is especially true in cases of Social Security disability benefits.
The insurance policy will have the definition of a term such as “Pre-Disability Earnings.” Against that, you apply the percentage they will pay as a benefit, typically 60%. Then comes the curve ball – the offsets.
What Are Offsets?
These offsets come from different sources. The primary offset is Social Security benefits. Others include retirement or pension benefits, as well as severance benefits and third-party claims. The latter are beyond the scope of what I want to address today: Social Security disability benefits.
Social Security Disability Benefits
I cannot overstate the importance of commencing and actively pursuing these benefits. My experience leads me to believe that an insurance company will deny a claim if it is concerned that it will not get its offset against the Long Term Disability benefits the insurance company might owe.
My experience is also that, despite our exhortations, clients seem to resist applying for Social Security Disability benefits. Maybe they think it is welfare – it is not! It is something you faithfully paid for out of your paychecks. Don’t let this be a reason you do not apply. Also, I think many of my clients believe a Social Security claim means they are never returning to work. That is also not true.
Social Security And Long Term Disability
It is essential for your Long Term Disability benefits claim to show the insurance company that you are pursuing Social Security. Set up your SSA account, submit the application, respond to requests for information, and show that you are seeing it through. Please keep copies of anything you submit to SSA so you can show this documentation to your Long Term Disability benefits insurance company.
Herbert M. Hill, P.A. Can Help
If you have any questions about your Short Term Disability benefits or Long Term Disability claim, please contact our firm. We are a law firm with offices located in Orlando, Florida and our practice extends throughout the state.
While most of our cases involve claims for Short Term or Long Term Disability insurance benefits, other practice areas 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, and retirement benefits, including pension, 401k, termination agreements, as well as claims arising under private disability policies.
