Most long term disability insurance companies require that you apply for social security disability. In fact, once you obtain your social security benefits, you usually have to repay the disability company an "overpayment."

Then the real kicker comes: your disability company terminates your benefits, telling you that "what social security does doesn't really matter to us."

Is this right?

According to the letter of the law this is correct. Your right to benefits under your long term disability contract depends on the language of the contract. Your right to social security disability benefits is dependant on federal law. Sometimes the outcome can be different.

The long term disability insurance company is required to consider the fact that you have been awarded disability benefits by social security but they are not bound by that decision.

This is one more reason why these group long term disability policies are just a step above an absolute sham.

I write about this and more in my book Robbery Without a Gun, Why Your Employer's Long-Term Disability Policy May be a Sham.

 

 

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