Many long term disability policies will deduct from your disability benefits any money you might receive for:
• Social Security Disability benefits,
• Dependent benefits,
• Workers’ Compensation, or
• Proceeds of a third party settlement arising out of an accident.
Many policies will provide the policy holder to either receive the full amount of benefits and agree to reimburse the carrier, if and when they receive any “other income” benefits. The amount that is owed back to the insurance and disability carrier is known as an “overpayment.”
What are My Options to Avoid Creating an Overpayment?
Alternatively, disability insurance companies can offer you the option to receive your benefits with an estimated reduction of the amount of other income benefits you might receive. So, for example, if you’ve applied for Social Security Disability benefits, your long term disability carrier can estimate the receipt of your Social Security benefits and pay you reduced benefits, while you’re pursuing your Social Security claim.
Once you receive your Social Security award, the carrier will adjust your long term disability payment, accordingly. If the long term disability carrier has denied your Social Security benefits, you may not have to pay them back.
What You Should do About an Overpayment of Disability Insurance Benefits
Each case is different and you should call today at 727-894-3188 for a free, no obligation consultation or to order a copy of her book, “Robbed of Your Peace of Mind: Everything You Need to Know About Your Long Term Disability Claim.” by clicking the link!