Long Term Disability (LTD) And Social Security
Subject to Complete Defeasance has a great article about how Long Term Disability (LTD) insurance companies make you apply for Social Security benefits, including this snippet of a conversation with an insurance company:
Insurance Company : “Have you applied for Social Security disability benefits?”
You: “No.”
ICJ: “When do you plan on applying?”
You: “I don’t.”
ICJ: “Why not?”
You: “Well, I thought about that soon after my accident and talked it over with a lawyer. He said that filing a Social Security claim would be a waste of time, effort and money. Seems I don’t meet the agency’s rather stringent criteria for disability benefits, and in any event I’ll probably be back to work long before the agency rules on my claim. The money I’m getting under my disability policy will do me just fine until I’m back on the job.”
ICJ: “We disagree.”
You: “‘Scuse me?”
ICJ: “We disagree. We’ve reviewed your medical records and feel you have a good chance of getting Social Security benefits.”
Yup, long-term disability insurance companies may make you apply for Social Security as part of your contract with them.
Why? Every dollar you get from Social Security, is a dollar the LTD carrier does not have to pay.
