Will You Have to File for Social Security Disability to get Long Term Disability Benefits?

When you are approved for benefits through your long term disability coverage, your insurance company will likely require that you file a claim for social security disability benefits. The amount that you receive from your insurance company can be offset by the amount that you receive from SSDI. Insurance companies thus have vested interests in your approval for social security disability benefits. In some cases, the companies may retain disability lawyers to represent their insureds in their social security claims.

If you are approved for long term disability benefits because of a workplace injury, the company might also ask you to apply for workers’ compensation benefits. If you are approved, then your insurance company will be able to offset the amount it pays to you by the amount you receive from workers’ compensation. In order to continue receiving your long term disability benefits, it is important for you to follow through on applying for benefits for social security disability or workers’ compensation.

Insurance companies commonly attempt to limit their losses by denying claims. Getting professional legal help can improve your chances of securing the benefits that you deserve from your long term disability insurance company. We can help you prove your claim. We can assist you with gathering and submitting the types of evidence that may be needed, and if necessary, litigate the matter on your behalf in the event the company tries to deny your claim. Contacting an experienced long term disability attorney from the team at Osterhout & Berger Disability Law may make the difference in whether or not your claim for benefits is ultimately approved.

Learn more about how Osterhout Berger Disability Law can help you HERE.

Long Term Disability Coverage and Benefit Options

While some workers may not think that they may become disabled and unable to work, many do. The Council for Disability Awareness reports that 25 percent of people in their 20’s will become disabled at some point during their careers, and the average disability-related absence from work is nearly three years. Some people have short-term disability insurance provided to them by their employers as optional benefits, and they might not understand the difference between that coverage and long-term disability coverage. Short-term disability coverage lasts for a short duration, normally no longer than three to six months. By contrast, long-term disability coverage picks up when short-term disability coverage ends and may continue indefinitely until the worker receiving the benefits is able to return to work. It is important to understand the coverage and the available options since some benefits must be chosen when getting a new policy.

Coverage and Benefit Options

There are several options available with long-term disability coverage, and everyone should be aware of these choices so that they ensure they get the most robust protections possible. Here are some of the common policy options one should consider.

Non-cancelable

It is important that the coverage that a person chooses is non-cancelable. Non-cancelable policies may not be terminated by the insurance company. The premiums must also remain the same as when the coverage was purchased as long as the insured continues making the monthly payments. The other terms of the policy will also remain the same as when it was purchased. If people purchase long-term disability coverage when they are young, their premium payments will stay at the same low level when they grow older with non-cancelable policies.

Untaxed

When people purchase long-term disability coverage, they should purchase enough coverage to replace between 60 and 70 percent of their current salaries. This percentage is sufficient to provide approximately the same amount of money each month as a worker’s take-home pay from their jobs because long-term disability benefits are not taxed.

Own Occupation

The own occupation option is important for people to consider purchasing. When a person becomes disabled, own-occupation coverage will continue paying them disability benefits as long as they are unable to return to the same occupation at which they worked before the disabling condition occurred. This option allows people to continue receiving disability benefits payments even if they are able to return to work in a different occupation but are unable to perform the duties of their previous jobs. By contrast, any occupation coverage means that the benefits will be terminated if the insured is able to return to any type of job even if it is not similar to the type of work that the person had before. People should take care to read the descriptions of their occupations in their policies to make certain that they closely match the required duties of their current jobs.

Benefit Period

Some cheaper policies have benefit periods lasting as little as two years. People should avoid long-term disability coverage carrying such short benefits periods. The average disability will last longer than two years, meaning that a person who opts for the short benefit duration may run out of disability benefits while they are still unable to work. The best coverage option allows people to receive benefits until they turn 67. At a minimum, people should try to choose policies that have a minimum benefit period of five years.

Elimination Period

Policies that have longer elimination periods, which are the times from the date of disability to when people receive their first checks, are cheaper, but they may not be the best choice. Available elimination periods may be 30 days, 60 days, 90 days, 180 days or 365 days. While the premium payments will be higher for shorter elimination periods, most people will find that coverage with a 90-day elimination period is the most cost-effective. It is a good idea for people to review their finances in order to determine what elimination period length they would be able to handle in the event that they suddenly became disabled. If people also have short-term disability coverage, they may choose an elimination period for their long-term coverage that will pick up when their short-term coverage ends. People may also use savings to cover longer elimination periods, but they should be aware that they may have medical expenses associated with their disabilities during the interim.

Residual Benefits

Residual disability benefits are another important option because they provide some benefits during periods of time when people are able to work some of their normal schedules but not return to full-time work at their jobs. Many more people suffer partial disabilities than total disabilities, and residual disability benefits may help them to make up the difference between their drops in income and their former incomes while their partial disabilities continue. When people are choosing residual disability benefits as an option for their coverage, they should avoid selecting residual benefits that are only paid after the insured first qualifies for a period of total disability coverage, however.

Read more about Handling a Denied Claim

Should You Hire an Attorney for Long Term Disability Benefits?

OBL Partner Erik Berger manages our Long Term disability division and is ready to help you with your claim!

If you have long-term disability insurance and have suffered an injury or illness, you may expect that your company will approve your claim for benefits.    Unfortunately, insurance companies often try to deny claims in order to minimize their losses. If your claim is denied, it can be financially devastating. There is an appeals process that you can follow if your claim is denied so that you can try to recover the benefits that you rightfully deserve to replace a portion of your former income while you are unable to return to your job. However, this process can be lengthy and complicated. Our team at Osterhout Berger Disability Law has the experience you need when selecting a long term disability attorney to fight for your benefits.

If your claim for long term disability benefits has been denied, you will likely need to get the help of an experienced long term disability attorney in order to recover the benefits that you should receive. We can advocate for you throughout the appeals process to help you win approval of your claim. Some of the tactics insurance companies engage in to avoid paying out long term disability claims are unfair. For example, a company may hire an investigator to surveil you and videotape you engaging in different activities. It is common for an insurance company to only show clips from the videos that portray the individual as being more physically capable than he or she is. We may be able to get copies of all of the video footage or seek to suppress it in its entirety.

It may be a good idea to secure representation before filing your benefits claim with your long term disability insurance company. Many companies request information from disability claimants at the outset of their claims that the companies may turn around later to use against them. We can advise you on what information to provide in order to better protect your interests and your claim. It is especially important for you to secure legal representation if a hearing is scheduled for your claim. We can make certain that the record contains all of the medical evidence that is needed in order to support the grounds for your claim.

Read more HERE

Long Term Disability Helps Social Security Disability Claimants

Linda worked for many years as a dentist before degenerative disc disease in her back prevented her from carrying out her normal job functions. She applied for Social Security Disability, but because she was highly skilled and under 50, she was denied at the initial level and was told that she may have to wait a year or longer before actually receiving benefits. She didn’t actually remember her Long Term Disability (LTD) policy until her Social Security disability representative asked if she had purchased a disability policy of any kind that may provide benefits while she waits for the Social Security case to be approved. Her Social Security disability representative immediately put her in touch with Osterhout Berger Disability Law and Erik Berger was able to assist her with her LTD application. Linda’s LTD benefits were approved and provided her with significant monthly payments. The successful LTD claim allowed her to maintain her lifestyle and afford needed medical care which in turn, provided needed medical evidence for her Social Security claim.

Erik Berger, OBL Partner, Long Term Disability Division

Erik Berger adds, “LTD claims are very different from Social Security disability cases. While both involve evaluation of complex medical and vocational issues, the huge difference is that in LTD claims the insurance company is not obligated to help the claimant with their case like Social Security personnel are. Therefore, something as innocent-sounding as a mistake or omission in the application itself, or failure to understand what the definition of “disability” is under the LTD policy (it is frequently different than Social Security’s definition), can continue to haunt the case, because the insurance company’s lawyers’ job is to fight the award of disability benefits every step of the way. It is our job from the beginning of the case to make sure these mistakes don’t happen, which gives our clients the best chance of winning their claim as quickly as possible, like Linda.”

If you have filed a Social Security Disability claim, and have a Long Term disability policy through an employer or one that you have purchased yourself, take advantage of those benefits! Many times, benefits can be paid out faster through these policies than with Social Security disability. We can work with your Social Security disability representative to provide the evidence needed to secure LTD benefits which can help your Social Security claim by providing an income while you wait and allowing you to continue treatment.

If you are a Social Security disability representative, you should be asking every single one of your clients if they have a disability policy through an employer or one that they purchased themselves. Not only can it help them, but it can help you win the case! We will help your client with the LTD application and will share any records or evidence we obtain in order to help you with the disability case. It really is a win-win!

Receiving Social Security Disability or Supplemental Security Income? Here’s What You Need to Know About Covid-19

Loss of Normal Income

If you receive SSI and either you or your spouse has lost income due to Covid-19, you need to report the loss of income to Social Security by calling 1-800-772-1213. By reporting a loss of income, your SSI monthly payment may increase.

Stimulus Checks for Disability Recipients

Information about stimulus checks is changing rapidly and it can be especially confusing for individuals receiving Supplemental Security Income (SSI) or Social Security Disability (SSD). The most recent advice from SSA helps to clarify:

Social Security retirement, survivors, or disability beneficiaries and Supplemental Security Income (SSI) recipients who do not have qualifying children under age 17:

You do not need to take any action with the IRS. You will automatically receive your $1,200 economic impact payment directly from the IRS. You should receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as you would normally receive your Social Security benefits.

People who receive Social Security retirement, survivors, or disability insurance benefits, who did not file a tax return for 2018 or 2019, and who have qualifying children under age 17 and those receiving SSI who have qualifying children under age 17:

Go to the IRS’s webpage to enter your information instead of waiting for your automatic $1,200 Economic Impact Payment. By taking proactive steps to enter information on the IRS website about you and your qualifying children, you will also receive the $500 per dependent child payment in addition to your $1,200 individual payment. If Social Security beneficiaries and SSI recipients in this group do not provide information to the IRS soon, you will have to wait to receive $500 per qualifying child.

The IRS page link above has two options; Filer and Non-Filer. if you normally file tax returns every year, you will choose the Filer option to enter your current information and your child’s information so that you receive the $500 per dependent benefit. If you do not normally file tax returns, select the “Non-Filer” option. It should be noted that the economic relief payments will not be counted as income for SSI recipients and will not compromise SSI eligibility.

Garnishment

Depending on the state and the creditor, the stimulus funds may be subject to garnishment. The National Consumer Law Center recently released an article, Protecting Against Creditor Seizure of Stimulus Checks. In the article, they detail a strategy to protect Social Security recipients from garnishment:

A special strategy for those at risk of garnishment is available for recipients of Social Security, SSI, Veterans, or certain other federal benefits. A U.S. Treasury rule exempts from garnishment an amount in a bank account or Direct Express card equal to two months of federal benefit payments for that individual. See NCLC’s Collection Actions § 14.5.4.

The protected amount in a consumer’s account need not be traced to the federal benefits—that dollar amount is protected no matter its source. If two months of federal benefits for a Social Security recipient is $2000, their account will be fully protected from garnishment if there is only $800 in the bank account before the stimulus payment is deposited. Once the $1200 is deposited, the total amount is less than $2000. Before the next Social Security or other benefit payment is deposited, however, they will need to withdraw additional amounts to keep the new balance under $2000. Fortunately, benefit payments come on a predictable date each month, such as the second Wednesday of the month.

This strategy comes with a cost, as described above, since it may be more convenient and safer to keep all funds in the bank account than to rush to withdraw cash or make payments from the account.

We will continue to post the latest information pertaining to Social Security and Covid-19 here on our blog!