Is it legal that a long term disability policy can offset benefits based on ss?

Question

I am disabled. When I worked I bought long term disability. I received payments from them until I got social security. When I was awarded ss I had to pay them back a big sum of money. Now they are telling me since I get social security and my children do also based on my disability that they only have to pay me the minimum of $50 a month. Is this legal since this is private insurance that I bought? Should one thing have to do with the other?

Answer 1

Yes, it's legal.  It's in the contract you signed.  You agreed to it up front.

The PURPOSE behind it is twofold - 1.  so you can't collect more by being disabled, than you are by working - that creates a morale hazard, and gives you NO incentive to "get better".  and 2.  to help minimize what the taxpayer has to pay out to you, in social security benefits.  The system is poised on the verge of collapse, you know.  Some day, in the not too distant future, you will have NO payouts.  Mathmatically, it's inevidable.

Answer 2

That's absolutely right...you are already receiving the maximum family amount in social security disability payments. Read your contract, especially the part regarding coordination of benefits. It seems everyone wants their cake, and my cake, and my brothers cake, and my neighbors cake. You cannot have everyone's cake and eat it too.