What if I have a Long Term Disability
Policy and I am Receiving LTD Benefits? 

It has been my experience that most LTD carriers require claimants to apply  for Social Security since Social Security benefits can reduce the amount of  money that the LTD carrier must pay over the course of a claimant's lifetime. In addition, the Medicaid and Medicare benefits that accrue to Social Security  beneficiaries can reduce the health insurance costs to a LTD carrier.

Our office  has established ongoing relationships with most of the LTD carriers who issue  coverage in the Atlanta area. In most (but not all) situations, LTD carriers can  assist our office in obtaining Social Security benefits and the end result to  you will be the same or more monthly cash benefit. If you are covered by an LTD  policy, please let us know.

The practice of LTD carriers requiring claimants to apply for Social Security disability has come under scrutiny recently.  The New York Times published an extensive report about this practice on April 1, 2008, suggesting that the multi-year long delays in the processing of Social Security disability cases has been made worse because of LTD carriers actions. “Disability” for LTD purposes often has a less demanding definition than the definition of “disability” for Social Security purposes, meaning that a person might qualify for benefits under his LTD policy but not qualify under Social Security’s rules.

The result of these “required SSDI filing” policies has been to add to the backlog of claims to be processed, when the actual claimant does not want to apply and the claim is not likely to be approved.  The Times referenced the stories of several claimants who reported that their LTD carriers called over and over - almost to the point of harassment - to make sure that the SSDI application was filed.

If your LTD policy requires you to file for SSDI, you need to do so to avoid termination of LTD benefits.  And, of course, many LTD claimants do have legitimate SSDI claims.  I have sold several copies of my Social Security Disability “how to” book to LTD claimants who have been forced to deal with SSDI, while several others have become clients of my firm.