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Long term disability insurance repayment

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sammyfan

Junior Member
What is the name of your state? Kentucky The insurance company did not prepare me
to repay benefits. In the policy it said that I could not receive other money at the same time that I received benefits from them, but I wasn't aware that I had to pay back everything after I got a lump sum payment from social security. And now they are asking about benefits I received for my son. They said that will be included in the payback also, when I received benefits from the insurance company my son was not paid, why is it their business what he gets?What is the name of your state?
 


Mrs3

Junior Member
Well, LTD benefits are an insurance policy that gives you a percentage of your income should something unfortunate happen that causes you to lose that income. It is paying you because you are too disabled to work. It's agreement with you is to keep your income at a certain level, if you will.

If you bring in any income that is not from the LTD company while you are receiving benefits from the LTD carrier they can deduct that from what they are paying you. Social Security benefits are income. The income you receive from SS for your son is still income. You receive it on his behalf. Just like alimony. If you receive alimony for your child it is considered income. In this case SS is paying you additional funds to help in caring for your son.

Different States have different laws but that is all in your policy information.

You should have been prepared to repay the SSDI payments. The policies are pretty clear on that.
 

Isis2

Junior Member
My State is Pennsylvania.I too think that this is absolutely riduclous!! First off, my LTD did not pay any benifits to my child, so why do they think they can include what he got awarded in their repayment?? I have no problem with them deducting my monthly benefit they pay me when I started recieving SS however, I strongly oppose repaying them what I recieved in retroactive payments. If I understand this correctly the LTD insurance co, is basically a loan company. Insurance is suppose to be a benefit that we pay for. It is just that, an insurance policy we put in place to insure financial security if something should happen. Secondly LTD disability Insurance in most cases is private, using no state or federal funds. I paid a quarterly premium for this insurance with my own money. Should I demand repayment for the years of payments I made when I didn't use the disability Insurance? SS is a benefit that we paid into. LTD Insurance company should have no claim to any SS benefit I or my child should recieve. They sent me a letter requesting me to file for SS and that should I get approved I should notify them and include my award letter. The next week, they sent me a letter with a form attatched stating that If I start to receive SS disability benefits I would agree to pay them back, and that I should sign the form to show I understand and agree to pay back any retroactive payment. I have not signed or returned this form. Nor, do I plan to.
 

moburkes

Senior Member
No, it's not a loan. OP happened to have also received social security for the same time frame as the LTD policy gave him benefits. That isn't always the case. If he had not qualified for social security (retroactively), then he would NOT need to pay it back. That is clearly stated in the policy.

Benefits for a child go to the parent/guardian/caretaker. The cash/check is to be used for the CARE of the child, in the same way that a parent's paycheck is used for the CARE of the child. But, it is technically the parent's income, not the child's. The alimony example was a good one.

Isis, you need to start your own thread.
 

Isis2

Junior Member
Ok, So then it becomes a conditional loan, or a secured loan, however you want to view it. It is still a loan, not insurance. Most of us on disability have a significantly lower income than if we were able to work but, our cost of living has not been reduced. We still have mortgages, car payments, credit card payments, utilities ect. Except now, we have co-pays that in my case I have to pay at least twice a week. We have to cover medical expenses that the insurance co refused to cover. In my case it was a bone stimulator to the tune of $500. Some types of therapy are only covered for a certain amount of visits, If we want to continue them, it comes from our own pockets. However some of us knew that if something did happen to prevent us from working we would need to have insurance to enable us to keep up with our present and new expenses. So we buy disability insurance. Then we apply for SS. to help continue to keep our heads above water. One would think its a smart move. Not the insurance co. after all according to them we are only intitiled to at most 60 % of our income, why??? Who says? because if you look at it in this context if you applied for SS while on disability, and you had to pay most if not all of your retroavtive pay back to the insurance co, where was the benefit?? What did we pay for? Why can't the insurance co. be content with just reducing their monthly benefit to us once we start SS.? Why? because they want to reduce their monthly obligation to us, and if at all possible they want their money back. So again it is a loan.
 

Isis2

Junior Member
Well moburkes, on this particular subject, I think you and I should agree to disagree :) :) (even though I was clearly enjoying myself with my defense on this matter:D ) What do you say???
 

moburkes

Senior Member
Well moburkes, on this particular subject, I think you and I should agree to disagree :) :) (even though I was clearly enjoying myself with my defense on this matter:D ) What do you say???
When you start your own post, I will respond. Until then, leave me alone.
 

Isis2

Junior Member
extremely Rude. I certainly hope you do not carry this attitude in your profession. Most unproductive. I have no desire to respond to you
 

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