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Old 09-01-2011, 04:49 PM   #1
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LTD and SSDI

Tell me what you think. Hypothetical only>>>Just thinking out loud! LOL

1. Min. LTD benefit = $150.00/month.
2. Not approved for SSDI.
3. LTD is offset by SSDI dollar for dollar.
4. LTD before SSDI approval = $1500/month
5. Received LTD for 2 years - $1500 x 24 = $36,000
6. Approved for SSDI @ $1500/month
7. SSDI = LTD, therefore LTD = min monthly ($150.00/month)
8. Payment start date for SSDI = LTD start date.

Question? Do you owe back LTD $1500 x 24 = $36,000. It seems to me if you had to pay this amount back, LTD would not even be paying you the min amount. Should not the overpayment (2 years) be ($1500 - $150) x 24 months = $32,400. That leaves you with $3600. Now, your LTD carrier credits your lawyer's fee of $6K.

Final breakdown

LTD carrier gets $32,400 - $6K = $26,400
Lawyer gets $6,000
You retain $3600

$26,400 + $6,000 + $3600 = $36,000.

Unless you don't have a min LTD amount, you should retain a small amount of the backpay. Am I right or wrong?

 
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Old 09-01-2011, 07:19 PM   #2
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Re: LTD and SSDI

Majority of LTD policies I've seen (working at a variety of carriers) would "credit" the claimant for attorney fees. Many LTD plans due have a minimum monthly benefit, but not all.

So:
*Back pay of $36,000
*$6,000 goes to attorney
*$30,000 remains
*BUT claimant is due minimum of $150 x 24 mo = $3,600
*So claimant owes back $30,000 - $3600 = $26,400
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Last edited by moderator2; 09-01-2011 at 07:36 PM.

 
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Old 09-01-2011, 10:29 PM   #3
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Re: LTD and SSDI

Quote:
Originally Posted by SpineAZ View Post
Majority of LTD policies I've seen (working at a variety of carriers) would "credit" the claimant for attorney fees. Many LTD plans due have a minimum monthly benefit, but not all.

So:
*Back pay of $36,000
*$6,000 goes to attorney
*$30,000 remains
*BUT claimant is due minimum of $150 x 24 mo = $3,600
*So claimant owes back $30,000 - $3600 = $26,400
Thanks Spine! This is as I thought but was not sure. I was just sitting around today and this popped into my head. I suppose like most things in life, the cheaper the policy, the less robust

 
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