One of the most pervasive claims practices that I’ve seen in the course of my disability practice is long term disability carriers playing both sides! What do I mean? Many long term disability policies require that you apply for Social Security Disability benefits. And, if you don’t, they’ll reduce your long term disability benefits based on an estimate of what they think you would receive in Social Security Disability benefits.
It gets worse! Many disability policies have provisions that allow the disability insurance company to reduce or even eliminate disability benefits if you receive what’s called “other benefits”. Those can include Social Security Disability, workers’ compensation benefits, retirement benefits, even a 401k distribution.
More often than not, the long term disability carrier will suggest that you hire a company like Allsup which are paid by the long term disability carrier to assist you in getting your Social Security Disability benefits. And, guess what? As soon as you get those disability benefits the long term disability carrier will cry “overpayment” and allege that they have overpaid you benefits because you have received both long term and Social Security Disability benefits. What’s even more amazing is that the long term disability carrier will soon find a reason to deny any further disability benefits claiming that they have over paid you and they don’t owe you anything.
This situation happens more often then we’d like to see. Before you file a claim for disability benefits or before you retain the services of a Social Security representative recommended by the long term disability carrier, get a free no obligation consultation regarding your rights to long term disability benefits and the impact Social Security might have on those benefits. You can contact long term disability attorney, Nancy Cavey, for a free, no obligation thirty minute consultation. 727-894-3188.