Long term disability benefits are from insurance policies from private insurance companies. These policies usually pay you a percentage of your income when you cannot work due to health reasons. These policies usually pay after 6 months of disability. They may or may not pay out monthly benefits indefinitely.
Some employers offer long-term disability insurance benefits to their employees. Some people purchase it on their own. Employees who pay their own disability insurance premiums should receive insurance payments tax-free, but consult with your tax professional.
Most often, these long term disability policies come into play with chronic illnesses, but you may qualify for any medical condition that keeps you from working for more than 6 months. Some employers who offer short-term disability insurance may also offer long-term disability – but this is not required. All employees should understand their benefits packages, especially if a formal insurance claim is required to invoke them.
When our Social Security lawyers encounter these private long term disability policies, we can integrate this evidence into our overall legal arguments.
Long-term Disability Insurance “Offset”
Most long-term disability insurance policies now have Social Security Disability benefit“offset” provisions. If you receive private long-term disability insurance, you are by contract required to apply for Social Security Disability benefits. If you are approved for the government benefits, you need to pay back the insurance company. On a certain level, it may even make you wonder why you got long-term disability insurance to begin with.
Interestingly, the insurance companies forcing you to apply for Social Security benefits (to get their money back) may also offer you Social Security representation! This may or may not even be an attorney. It can be a national corporation nowhere near your area of the country. Here’s the deal: You can choose your Social Security representation. If you know you want an attorney to argue the law in your favor, you can insist that your long-term disability insurer not ask for any of your back-pay that paid us. In other words, your long-term disability will not ask for our 25% of your back payment of Social Security benefits. In this situation, you have two things going for you. First, you got to choose our law firm who works in your area. Second, the insurance company essentially forgives our attorney fee. Better representation at no final cost to you. This information is important for you to know.
Choosing our law firm to fight for your Social Security benefits when you have long term disability is an easy choice. Call us today.