VIDEO: What are Offsets?
While long term disability policies may be of assistance to individuals in some situations, there is often more than one place from which a disabled individual could receive benefits. Workers’ Compensation, Social Security and State Disability Insurance could also be available. Individuals who have long term disability policies should know that any benefits received from these other sources could offset their monthly disability benefit.
What this means for a disabled individual is benefits from multiple sources will not be stacked on top of each other. Instead, the amount an insurance company pays will be reduced by the amount received from other sources.
This system can be confusing to disabled individuals. We understand this and advise individuals regarding what to expect concerning disability benefits and the potential pitfalls.