very confused

[faithnlve]

What is the name of your state (only U.S. law)? Vt...I am trying to help a friend who is on disability. She was injured at work and received Workers comp. Due to her injuries then a variety of other medical issues she became disabled. The insurance company through her benefits from work informed her that she would now be considered disabled and could receive her benefits through the insurance she paid into at work. They are also paying on her life insurance policy. She did apply for Social Security Disability benefits and was denied. This has been going on 2 years now that Social Security denied her. She has an advocate with the insurance company helping her to get her Social Security still. Well, now she has received a letter from the insurance company that if she is approved for the Social Security Disability benefits the first check is to be sent to them. (the check would be 2 years of retro pay). Why is this? ty Faith

 

[ShyCat]

This is a typical contractual issue with LTD policies. LTD policies typically pay the difference between SSDI and the benefit amount, so you don't get both. For example, if the benefit amount is $2000 per month and SSDI is $1400, LTD will continue to pay $600 after SSDI is awarded. The retro-pay is applied to what LTD has already paid for the last 2 years.

LTD policies that do not include an SSDI offset have much higher premiums.