April 2, 2008

• Long Term Disability Insurance Carriers Faulted for Forcing Claimants to Apply for SSDI

  Earlier this week, the New York Times published an enlightening article about the practice of Long Term Disability (LTD) carriers requiring LTD beneficiaries to apply for Social Security disability.  This practice is commonplace and the reason for it is simple economics.  Most employer paid LTD policies provide that (1) any SSDI benefits received will offset the LTD carrier's policy obligations and (2) the claimant must "repay" the LTD carrier any lump sum received for past due SSDI benefits. (…)

September 21, 2007

• LTD Carrier Misleads Claimant About Repayment Obligation - What Next?

  This blog post is a little off topic but I have included it because it serves as a warning to SSDI claimants who are also collecting long term disability benefits.  Thanks to Mike the gentlemen who wrote me to describe a problem he is having with his LTD carrier.  Mike apparently had long term disability (LTD) coverage at the time he became unable to work.  Many LTD policies, especially those provided as a benefit by your employer, contain provisions that (1) require you to apply for Social Security benefits and (2) that if you are approved and are awarded past due benefits, that you must repay the LTD carrier when you receive your lump sum back benefit check.  In addition, going forward, your LTD benefit will be reduced by whatever you receive from SSDI. (…)