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twbolick
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twbolick asked 10 months ago in Disability Insurance

SSA disability payments

I have a purchased disability policy which I am receiving benefits from. The SSA granted me full permanent disability. My commercial insurance carrier now wants to get my SSA disability insurance payments. Is this legal?

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Mary
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Mary responded 3 months ago

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Is there such a company in North America that does not have Social Security offset? I'd really like that business name and contact information ...

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Michael Kitces
FiLife Contributor
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Twbolick,
It sounds to me like your disability insurance policy has a so-called "coordination of benefits" provision that is designed to reduce your disability benefits to the extent that you are also receiving Social Security benefits.

It would be unusual for them to be requesting or receiving your Social Security disability payments directly. However, they may wish to receive additional information about the details of your Social Security payments, so that they can properly reduce your policy disability benefits payment by the equivalent amount to avoid "double paying" you from both the insurance company and Social Security.

Not all disability policies have this type of provision, although they are fairly common. You may wish to look through your disability policy yourself and watch for information about "Coordination of Benefits" or "Social Security offset" or similar terms. The policy should explain what the company can and cannot do regarding this issue.

I hope that helps a little!

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