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Do I Have To Pay My Social Security Disability Insurance Award To My Long-Term Disability Carrier?

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Most disability plans require you to apply for SSDI benefits so that they can reduce the amount of long-term disability benefits that they have to pay.  This is because most disability plans provide that SSDI benefits are an offset to long-term disability benefit payments.  If the long-term disability carrier paid your full disability benefit and you receive a retroactive award of SSDI benefits, the insurance company may be entitled to a reimbursement of the overpaid long-term disability benefit.  This is often the amount that you receive in retroactive SSDI benefits.  If you do not reimburse the insurance company, it may withhold your future long-term disability benefits until it has recouped the entire overpayment.

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