What Is a Social Security Offset?
Most ERISA LTD group policies actually require that you apply for SSDI benefits. If you win your SSDI claim, the insurer will likely reduce the amount of benefits that it pays to you. Though it is not fair, generally, insurers are allowed to do this.
Be aware of potential double offsets. Sometimes, individuals are covered under two or more LTD policies. If both provided for an offset of SSDI benefits, that can result in a double offset and you receiving less disability income than planned.
For example, if you had two LTD policies that each paid $2,000 per month, you would expect $4,000 of monthly disability income. If each policy provides for an SSDI offset, and your SSDI benefit was $1,000 per month, courts have ruled that the insurer may take an SSDI offset from both policies, thus, the insured is left with $3,000 in monthly disability income–$1,000 from each LTD policy, and $1,000 from SSDI.
- How Does Long-Term Disability Work With Social Security Disability?
- How Long Can You Stay on Long-Term Disability (LTD)?
- Phlebitis and Long-Term Disability Benefits
- The Value of Vocational Evidence in Long-Term Disability Claims
- How Long Do Long-Term Disability (LTD) Benefits Last?
- What Do You Do If Your Benefits Have Been Wrongly Denied?
- Do You Have Disability Insurance Coverage?
- What Is Disability Insurance?
- How Will I Pay for My ERISA Disability Lawyer?
- What is the Employee Retirement Income Security Act (ERISA)?
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