Why Bother Applying For Social Security If I Have To Repay My Long Term Disability Company
You may wonder why even bother going through the hassle of fighting to get social security benefits if you are just going to have to give it to your insurance company. Why do the work for them? First of all, you should apply for whatever is available to you since nothing is guaranteed and you dont know what you might get or when. Second of all, the terms of your long term disability policy likely require it. In the fine print of your policy, it probably says that you have to apply for social security. Your insurance company may even offer to match you up with someone to help you apply for your benefits. This representative might not even be a lawyer and I believe that it is best to hire your own lawyer to help with the social security, and certainly with the appeal of LTD benefits. The insurance company will require this because if you are awarded social security benefits, then the United States government just saved the insurance company money.
Neurologylive: How Does Eliminating The Wait Period For Patients With Als Benefit Their Care
Brian Frederick, PhD: They gain immediate access to Medicare once they become eligible for SSDI.
ALS is a disease that forces people to stop working and lose both their income and health insurance. This loss occurs at the same time that people with ALS and their families are most vulnerable and must face a terrible disease with astronomical medical expenses. Most people who have worked are eligible for SSDI. But the application process can be very long. Even once someone is declared eligible for SSDI, they must wait 2 years before they can be covered under Medicare.
The new law, effective on December 23, 2020, now ensures that anyone with ALS who is eligible for SSDI will receive Medicare immediately. We believe that anyone with ALS who applied for SSDI in the past 5 months should benefit from this new law.
The ALS Association was instrumental in getting ALS covered under the Social Security Administrations Compassionate Access program so that applications are expedited for approval in a matter of weeks. Critically important, in 2020, The ALS Association also won Congressional passage of a bipartisan bill that waived a 2-year waiting period for Medicare for people with ALS who receive SSDI.
Regular Or Own Occupation
The definition of “regular or own occupation” plan means you’ll receive benefits if you’re unable to perform the main duties of the job you had at the time the disability started.
You’ll still receive benefits even if you can work in a different job from the one you had before your disability, based on your training, experience and education. Some policies don’t allow you to get benefits, or may reduce your benefits, if you begin working in a different job.
In group policies, it’s common that policies have regular or own occupation plans for a specified period of time. At the end of the specified period of time, usually after the first 2 or 5 years, the disability policy will often change to the any occupation definition.
Own occupation plans that never change in definition are often purchased individually and usually cost more than any occupation plans.
You may want to consider an own occupation plan if you have a specialized occupation that would require you to take a significant pay cut in order to work in another field.
Also Check: How To Calculate Disability Retirement Pay
Best For No Medical Exam: Principal Financial Group
Principal Financial Group
Principal Financial Group offers a few different disability insurance products, including the Simplified DI program. This allows consumers to get up to $6,000 a month in long-term coverage faster and with fewer requirements, like no medical exam, earning them our top spot in the no medical exam category.
Streamlined process is quick and easy
Principal will combine different periods of disability to help reach the policys elimination period
Benefits of up to $6,000 per month are available with simplified underwriting
Employment requirement is only 20 hours per week
Online applications are not available
Final answer can take a few days to receive
With a history dating back to 1879, Principal Financial Group has a long and successful track record of offering quality insurance coverage. They hold an A+ financial strength rating from AM Best and offer a variety of disability insurance products to suit consumers needs.
Principal offers individual disability income insurance policies with up to $20,000 in monthly benefits, though this maxes out at $6,000 if you want simplified underwriting and no medical exam. Elimination periods range from 30 to 365 days, with benefits lasting two or five years, or through retirement .
Unlike many other companies that require 30 hours of weekly work to be considered, Principal only requires you to work a minimum of 20 hours a week in order to qualify for a policy.
Contact Chisholm Chisholm & Kilpatrick Ltd
The attorneys and professionals at Chisholm Chisholm & Kilpatrick have experience dealing with different types of overpayments asserted by insurance companies. We can help you navigate this process and ensure that the insurance company is treating you fairly and only asserting overpayments to which it is entitled under the policy. We can also help to ensure that the insurance companys calculations are correct and that you meet any deadlines associated with paying these benefits back. Contact us today for a FREE consultation to see if we can assist you.
Don’t Miss: Best Rv For Disabled
Treatment And Rehabilitation Programs
Insurance companies can force you to attend treatment and rehabilitation programs. For example, they might send you for psychological treatment. Or, they can enroll you in physiotherapy programs. Not every policy has the right to do this, but most do. So, make sure to check yours. They cant force you to go, but they can stop payments if you dont.
You May Have Repayment Options
When you receive a Social Security offset letter, the disability insurance company will typically include a form with your repayment options. Depending on the terms of your disability insurance policy, these might include:
- A single lump-sum payment
- Incremental deductions from your monthly LTD payment
- Withholding your LTD payments until youve fully reimbursed the company
While many people would rather not write the insurance company a large check, it can be hard to decide between these processes.
At Bryant Legal Group, we help our clients weigh their repayment options and confirm the exact amount that must be repaid. Sometimes, disability insurance companies make mistakes in their calculations. We can help you understand exactly how much Social Security backpay you owe your insurer.
What Medical Conditions Qualify For Long
Almost any illness or injury can qualify for long-term disability. Insurance companies dont approve claims based on a diagnosis. Rather, they focus on the disability caused by your medical condition.
Its possible to have a serious diagnosis but not be disabled. For example, you may consider the diagnosis of Multiple Sclerosis to be very serious. However, many people with MS arent totally disabled. At least, not right away. So, insurance companies deny many disability claims for MS. The reason for denial is because the symptoms are not serious enough yet.
So, your diagnosis alone wont get you approved for benefits. However, insurance companies do want to see a solid diagnosis. This is because a diagnosis will shape your treatment plan. And your insurance company will only approve your claim if you have a treatment plan. Moreover, it cant just be any plan. They have to agree with it.
If they dont agree with your treatment, then they can deny your claim or stop your payments.
Check out these articles on disabling medical conditions to learn more:
How Long After Fmla Can You Quit
So, yes, legally you can quit now you dont have to wait until you return from FMLA. You also dont have to give two weeks notice. Thats a nice thing to do, but its not required by law, only convention. Clearly changing jobs at this time isnt as easy as you may think, but its completely legal.
Also Check: Apply For Benefits Sc
For Further Information Contact:
Mary Quatroche, Director, Office of Vocational, Evaluation and Process Policy, Office of Disability Policy, Social Security Administration, 6401 Security Boulevard, Baltimore, MD 21235-6401, 966-4794. For information on eligibility or filing for benefits, call our national toll-free number, 1-800-772-1213 or TTY 1-800-325-0778, or visit our internet site, Social Security Online, at .
How Long Does Long
Even after coverage is approved, your long-term disability insurance benefits wont kick in until youve satisfied the waiting period requirement. For most policies, this is at least 30 days, though it can easily be 60, 120, 365, or even 720 days.
Once benefits start, they will continue until your predetermined benefits limit is reached. This is the period of time you chose when you purchased the policy, and can last for a specific number of years or through retirement. The longer the benefits period, the more youll pay in premiums for your coverage.
You May Like: 504 Food Allergies
Who Can Apply For Cpp Disability Benefits
Do you suffer from a disability and you find yourself unable to work? You may be eligible for CPP disability benefits. Below are the qualifying criteria:
1. Minimum Qualifying PeriodYou need to have worked 4 out of the last 6 years before you can go on disability.
2. Doctors SupportYou need to have your doctor support your absence from work. Your doctor will need to fill out a medical report form as a part of your application for CPP Disability, therefore his or her support is crucial.
How Monthly Disability Benefits And Payments From Social Security Offset
It is possible to receive both SSDI a government program funded by the Social Security Administration and LTD benefits from a private insurance company at the same time. Many individuals choose to prioritize disability insurance, as it is considered by some experts to be even more important than life insurance.
If you are unable to work due to a disability, you can apply for both SSDI benefits and disability benefits. There is a wait time for the LTD benefits to kick in , after which you will start receiving payments if your claim is approved. During this time, your SSDI application may still be pending.
Many LTD insurance policies have what is known as an offset provision. These provisions vary, but will generally require policyholders to apply for SSDI benefits reduce the monthly benefit by the amount of the SSDI payment and require you to pay back the insurance company from any disability payout that you have received.
On a monthly basis, the way that this works is relatively simple. If you received $2,500 in LTD benefits and then were awarded $1,000 in SSDI payments, then your LTD benefits would be reduced to $1,500. You would still receive $2,500 a month, but only $1,500 would be from the insurance company, and the remaining $1,000 would be from the SSA.
Also Check: Calculate State Disability Benefits California
Differences Between Disability Benefits And Paid Family Leave
- Only the birth mother is eligible for disability benefits for the period immediately after the birth of a child.
- Paid Family Leave begins after the birth and is not available for prenatal conditions.
- A parent may take Paid Family Leave during the first 12 months following the birth, adoption, or fostering of a child.
- You cannot collect disability benefits and Paid Family Leave benefits at the same time.
- There is a limited exception to this for employees who may be eligible for both disability benefits and Paid Family Leave when subject to an order of quarantine due to COVID-19. See PaidFamilyLeave.ny.gov/COVID19 for details.
Long Term Disability Benefits
Many private long term disability insurance policies include optional benefits and features called riders. Think of these as add-ons or extras that can enhance your coverage. Riders help you customize a policy to fit your needs and preferences. However, it’s important to remember that they add to the cost of your policy.
Here are the most common riders you can expect to come across when shopping for long term disability insurance.
The residual disability rider may provide benefits if you considered partially disabled, not totally disabled. It is designed to protect you against partial income loss. The residual disability rider comes into play if:
- You are able to perform some, but not all, of the material duties of your occupation.
- You are unable to work for a set percentage of the time.
Benefits are typically calculated as a percentage of your loss of earnings or what you would receive if you were unable to work.
The future increase rider allows you to increase your coverage amount at designated future dates. Better yet, it enables you to do so without going through underwriting again. Here are some typical scenarios where the future increase rider comes in handy:
- Reaching a certain age.
- Following a major life event.
- Your annual income increases.
- You lose access to group coverage.
The cost-of-living adjustment rider increases your benefit amount each year that you are disabled.
- Use of both feet
- Use of one hand and one foot
Recommended Reading: Disability For Partial Blindness
You May Have To Fight For Your Social Security Benefits
According to data from the Social Security Administration, that agency denies the majority of disability applications. Between 2007 and 2016, the administration only approved 33% of the applications it received. That means most claimants must go through a time-intensive appeal process before they get the benefits they deserve.
During a Social Security appeal, you must first file a Request for a Reconsideration. The administration will review your claim again and either approve or deny your benefits. If it again denies your claim, youll need to file a Request for Hearing.
At that point, a local Social Security hearing office, called an Office of Disability Adjudication and Review , will receive your file, assign a judge, and schedule a hearing. In Chicago, it typically takes 12 months for ODAR to assign a hearing date. If the administrative law judge denies your claim again, you can also file additional appeals.
When everything is said and done, many Social Security claimants wait years before they get a final decision on their claim. However, the administration must pay past-due benefits to those who successfully appeal their claims. While this backpay would be a welcome financial resource for many people, your LTD policys offset provisions also apply to retroactive Social Security benefits.
Why Is There A Waiting Period For Social Security Disability Benefits
The five-month elimination period is in place because the SSA only provides Social Security Disability Insurance benefits to people with long-term disabilities.
Rather than paying you disability benefits to later find out you were suffering from a short-term disability, the SSA will simply wait five months and see.
If your illness or injury goes away goes away before the five-month elimination period, you are ineligible for disability benefits.
For a free legal consultation, call
You May Like: How Much Does Disability Pay In California
Retain Counsel With Proven Results In Ssdi Claims
The Orlando Social Security Disability lawyers at Trial Pro have years of experience handling SSDI and SSI cases. We know the type of information and evidence needed to secure your onset date, and we are willing to fight for our clients to ensure they receive all of the benefits they are entitled to.
Contact our dedicated Social Security Disability team today at 800-874-2577. We have offices in Miami, Jacksonville, Orlando, Naples, and across Florida.
Do You Have To Pay Back Long
You may have to pay back your private insurance company if they end up overpaying you.
If a serious illness, physical injury, or mental condition prevents you from earning a living for an extended period of time, long-term disability benefits may provide you with a percentage of your income to help you make ends meet while youre unable to work.
However, in certain scenarios, you may be required to pay some of this money back to your insurance company. This can occur if you receive long-term disability benefits from both an individual or group insurance policy and the Canada Pension Plan .
Read Also: How Much Disability In California
Daniel Signs Reimbursement Agreement To Repay Unum Any Overpayments
Daniels claim for LTD benefits was approved on May 16, 2005, effective May 1. Upon approval, Daniel received a letter from Unum informing him that any SSDI benefits would be subtracted from his monthly LTD benefits. On July 15, 2005, Daniel signed the Reimbursement Agreement stating his intention to accept the full amount of LTD benefits and later repay any overpayments. By selecting that option, Daniel agreed to reimburse any such overpayment within thirty days of his receipt of such funds.
In March 2009, Unum received notice that Daniel was approved for SSDI benefits, retroactive to October 2005. Unum then determined that Daniels receipt of SSDI benefits resulted in an overpayment of LTD in the amount of $77,900 and after advising Daniel of this overpayment and pursuant to the Reimbursement Agreement, Unum began holding a portion of his monthly LTD benefit to recoup the overpayment.
Women Pay More Than Men
Even with all other factors being equal, women can pay up to 40 percent more in premiums than men for disability insurance. Thatâs because women suffer disabilities that impact their careers, such as breast cancer, autoimmune disorders, and depression, more than men. Disability claims for women also typically last longer than those for men.
- A 40-year-old male applying a $3,300 monthly benefit will pay $61 a month.
- A 40-year-old woman getting the same coverage will pay $80 a month.
For what it’s worth, the gender price gap for disability insurance is the opposite of life insurance. Women consistently live longer than men, which means they get the same preferential treatment you see men getting here.
Recommended Reading: How Much Does Disability Pay In Sc