People who have suffered a disability may be eligible for benefits from multiple sources. They may have one or more disability insurance policies. They may also be eligible for Social Security Disability benefits from the federal government. In some cases, they may be able to obtain workers’ compensation benefits if the disability was the result of a workplace accident.
With each potential source of benefits that is added, so is an additional layer of complexity. Disabled people cannot simply pile all benefits on top of each other. That is not how it works. Insurance companies will push the disabled person to obtain benefits from other sources so they do not have to pay as much.
Social Security Offsets in Disability Insurance Policies
Some individual disability insurance policies contain provisions allowing the insurance company to force the policyholder to file a Social Security Disability claim if the policyholder qualifies. There is a waiting period for Social Security Disability benefits. When that waiting period elapses, the insurance company may begin reducing the amount of disability benefits by the amount of expected Social Security Disability benefits. This is referred to as offsetting.
While the Social Security Disability offset is perhaps the most common, other offsets may need to be addressed. When the lawyers at DarrasLaw, America’s top disability firm, conduct your free policy analysis, all potential offsets will be reviewed. We want to make certain your benefits are maximized. With more than 100 years of experience on our side, we understand how insurance disability benefits and other benefits can and cannot overlap.