{3:25 minutes to read} If you’ve worked and received earnings in the US, you’ve likely paid enough into the Social Security system to qualify for Social Security disability benefits should you become disabled in accordance with their legal definition. If you qualify for those benefits, however, they can have an impact on your long-term disability benefits.
The government is becoming extremely stringent in its review of these claims, making it even more challenging to get a claim approved. The reasons for this stringency have come as a result of the belief that the system is flooded with inappropriate claims that last too long, or shouldn’t have been paid in the first place.
If you qualify for Social Security disability benefits, some of the benefits to which you are entitled may be offset under your long-term disability policy. It’s critical for you to read your policy to see whether or not that offset is there, as it will have a dramatic impact on both your claim and how much money you’ll receive.
This particular type of offset exists in most group disability policies, whether or not they are employer sponsored. They often offset the benefits you are entitled to receive, and they may also offset the benefits that your spouse and dependents are entitled to receive as a result of your disability.
In addition, this offset typically entitles the insurance company to recoup, or offset from future benefits, any lump sum that you may receive from the Social Security Administration. This may occur for a period of arrears if you apply late or if it takes a long time for your claim to be successful.
It’s very important for you to know whether or not that offset is in your current and future policies. Most individual disability income policies do not have an offset. If you purchased your policy directly from an insurance company privately, without going through an employer, there will most likely not be an offset.
Also, just because the Social Security Administration deems you to be disabled does not mean that your long-term disability insurance company has to approve your claims. The United States Supreme Court has made it clear that insurance companies are not obligated to be bound by a Social Security disability determination. Insurance companies and employers can make their own determination as to whether or not you’re disabled, regardless of whether or not you’ve received disability benefits from the Social Security Administration.
Read your policy carefully! Find out if your policy has an offset. If so, know that it may require you to apply for the benefits, and to appeal a denial from the Social Security Administration, perhaps going as far as a hearing. If you have questions, please contact us at [email protected]
Evan S. Schwartz
Founder of Schwartz, Conroy & Hack
833-824-5350
[email protected]
