Can LTD insurance company take retro SS benefits?

Question

Can LTD insurance company take retro SS benefits?

Answer 1

If your LTD insurance was a group policy paid for by  your employer then, yes the insurance company is entitled to your retroactice Social Security benefits.

The LTD company was paying those benefits to you in good faith while you waited for the government to process your disability claim. Group, employer-sponsored policies/contracts are written in that manner so that they are less expensive than individual LTD policies.

If you have an individual LTD policy that you paid for yourself then, no, the insurance company is not entitled to any of your social security benefits.

Answer 2

Yes.  The insured agreed to it when they first signed the application for coverage.   But take heart, if the SSDI is MORE than the LTD payout, LTD only takes up to the amount they paid out.

It keeps you from double dipping

Answer 3

I would imagine so.  Without seeing you contract, I couldn't even give you an opinion, but my opinion wouldn't matter to the LTD company anyway.  A lawyer is better equipped to answer questions about contracts.  Because I work with lawyers and still can't name many good ones, I recommend you do a lot of checking around before you settle on one.