Re: Long-term disability

[Greg Wasson <gregm94610@xxxxxxxxx>]

Hi Maggie,  The way it works in under most private policies.- If you have a 
long - term disability policy and you ultimately qualify for SSDI, any money 
paid out by the LTD insurer covering the time that you were on disabilty and 
were or are eligible to receive SSDI benefits, will be reduced to the extent of 
SSDI payments covering the same period. Therefore, to the extent that you 
eventually are awarded a back payment for that earlier period,  you must be 
repay that amount to the LTD insurer to avoid "double coverage". In other 
words, you are not allowed to "double dip" into both your private or company 
plan and SSDI for the same period. It is fundamentally fair. This should not be 
problem becuase the "retroactive" SSDI payment arrives in a lump and should be 
in addition to the SSDI checks you receive from that point forward, and can 
simply be paid over to the lTD carrier.. Likewaise, your future checks from the 
LTD copany will be reduced by the amount you get from SSDI. The 
 lump sum the LTD company wants back is simply the amount you get  as a back 
award for the prequlaification period during which you were eligible for SSDI 
but were not paid because SSDI had not yet estblished yoiur enmtitlement to ANY 
payment. It appears different, but the effect is the same as the future 
deduction the LTD carrier will make from your payments going forawrd to the 
extent of SSDI payments recieved. The LTD payer is essentiallly the last iin 
line to have to pay you, and is therefore entitled to reduce its payments by 
other amounts received, including social security. It is just that since the 
SSDI process takes so long from the time you become eligible, the insurer has 
paid out quite bit that it was not really obligated to pay, So they are in 
effect saying, now that you qualify for SSDI, if you receive a any paymernts 
from SSDI covering that earlier period, we want THAT money back.. It should not 
hurt because your retroactive SSDI payment will be in addition the
  present and future SSDI payments. Clear as mud? And to think I was an 
insurance lawyer. Greg Me <m.mauney@xxxxxxxx> wrote:Hi all,

I was wondering if any of you have received disabiility benefits from an
employer-sponsored disability insurance program. I was subscribing to my
employer's disability insurance, and made a claim for benefits when I
stopped working. I was approved for short-term and then later for long-term
benefits: I'll receive the long-term benefits for 24 months. My question
is:

The insurance adjustor told me that I would have to repay the insurance
company for the benefits I received if I'm approved by Social Security
disability. This will amount to more than $20,000 and it's a really scary
thought to know I'm liable for that much money when I'm on disability. Is
this correct? Do I have to repay the disability insurance benefits?

Maggie Mauney

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