Long Term Disability
Balancing SSDI and Long Term Disability Insurance
Many of the people who come to Clawson & Clawson, LLP for help in filing
a claim for
Social Security Disability Insurance are also covered by a private long term disability insurance policy. If
you have such a policy through your employer or one which you pay for
out of pocket, the disability insurance carrier may require you to file
a claim for Social Security before your claim for coverage through the
private insurer will be approved. For many people, this comes as a shock.
After paying for long term disability insurance through your payroll deductions
our out of your own bank account, you were probably expecting that you
would be able to receive benefits as soon as you were eligible.
The Insurance Company Is Not on Your Side
What you must remember, though, is that the insurance company is in business
to make money, and that they achieve that goal by collecting premiums,
not by paying on claims such as yours. Insurance companies will typically
use any possible excuse they can find to minimize, delay or deny a claim
for coverage. If you are eligible for SSD, therefore, they are likely
to require you to obtain those benefits as a prerequisite to claiming
benefits through your private insurance.
The reason why a private disability insurance company would require you
to file a claim for Social Security before paying you benefits is that
they will often use the amount you receive through SSD as a credit against
the amount they have to pay you. Instead of being liable to pay the full
amount, they would be able to reduce their payment to you according to
the value of your SSD benefits.
The positive aspect of this situation is that if the Social Security Disability
Determination Services staff decides to approve your claim, you can use
this fact as evidence to support your claim for long term disability.
We can help you navigate the complexities of the situation to ensure that
you receive the maximum amount possible-we are on your side and want to
safeguard your best interests.