Can a Long Term Disability Ins. Company reduce your benefits if you are collecting a state diability?
I have been paying for LTD for 11 years with my company. Even when I was disabiled I had to pay for it for 5 months along with my COBRA . In fact they are still charging for LTD along with COBRA but say they will credit it back to me. Now the Ins.company says that State Disability is more than they would pay so my benifit is not 60% of my pay and they only have to pay me $25 every 2 weeks. That is not what I was lead to believe I was buying can they do this ?
1 attorney answer
The answer to your question can be found in your disability insurance policy. Most group disability insurance policy have a provision that allows the carrier to offset income derived from other source. Typically, they will offset Social Security Disabiity Benefits, disability pension benefits where your employer contributed to the pension plan, workers compensation benefits where the work injury causes the disability, among others. Since your policy governs you will need to get your disability insurance policy and the SPD from your employer. Review the section on other income benefits to see if state disability is listed among the benfits subject to offset. Good Luck