Most long-term disability insurance policies contain clauses which allow your disability insurance company to claim an offset of your LTD benefits based upon other sources of income you are receiving. These offsets often include benefits you are receiving from Social Security, state disability benefits, other group LTD benefits, and compensation from your employer.
Do I Have to File for Social Security?
In addition to taking an offset for Social Security Disability benefits you are receiving, most group long-term disability policies require you to apply for Social Security Disability benefits at the discretion of your disability insurance company. Should your initial application for Social Security Disability be denied, your policy will usually require you to appeal the decision and continue appealing until the disability insurance company is satisfied.
While you may feel you do not qualify for Social Security Disability, as often happens when you qualify for your LTD benefits under an own occupation definition of disability, should your disability insurance company determine they believe you qualify for Social Security Disability and request you apply, then they are usually entitled to take an estimated offset if you refuse to apply or appeal a denial of Social Security Disability benefits.
It is important to understand when your long-term disability insurance company is entitled to take an offset and especially when they are not entitled to. At Seltzer & Associates, we will work with you, your Social Security attorney, and anyone else helping you coordinate your additional employment and financial options to ensure you are receiving all disability benefits to which you are entitled. The offset process can be complicated and the insurance company will always look to take the maximum offset possible, let Seltzer & Associates assist you with your long-term disability claim to ensure you receive the proper disability benefits.