Other Income Benefits is a provision found in most group disability insurance policies. It lists out what types of other income can be an offset to your long-term disability (“LTD”) benefit.
The most common Other Income Benefit include Social Security Disability (“SSDI”) benefits. Almost all group ERISA LTD policies require a claimant to apply for SSDI benefits. Upon award of SSDI benefits, your LTD benefit will be offset (i.e reduced) by the amount you receive from SSDI.
But what if you are not receiving SSDI benefits and instead you are receiving Income Social Security benefits – benefits that have nothing to do with your disability. Should that be that an offset to your LTD benefit?
The United States District Court in the Eastern District of Virginia answers this question in Aisenberg v. Reliance Standard Life Insurance Co.
The Court ruled that Mr. Aisenberg was disabled under the terms of the Policy and directed Reliance to provide Mr. Aisenberg with payment of back LTD benefits.
When calculating Mr. Aisenberg’s LTD benefits, Reliance Standard claimed that because Mr. Aisenberg began collecting Social Security benefits during the same year he became disabled, those Social Security benefits resulted from the same disability for which he was receiving LTD benefits for.
Mr. Aisenberg informed Reliance Standard that the Social Security benefits he was receiving was not a disability benefit but rather a benefit from earned income due to his age and work history.
The Court concluded that the LTD Policy was clear. Reliance Standard could not offset Mr. Aisenberg’s Social Security benefit because it resulted from his earned income and NOT a disability.
This is an important distinction because disability insurance companies will often try to offset any other income they feel is appropriate, even when it is outside what the disability insurance policy allows.
Having a long term disability insurance attorney with expertise in this practice area can tell the difference and fight to ensure you are paid the proper amount under the disability insurance policy.
Help from a Lawyer with Expertise in Disability Insurance
Disability insurance law is complex. Hiring an experienced disability attorney is important. Because all disability lawyers at this law firm focus on disability insurance claims, we have expertise in disability insurance law.
That means we have:
- Experience with every major disability insurance company;
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The firm can help at any stage of your disability insurance claim, including:
- Submitting a disability insurance claim;
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Because federal law applies to most disability insurance claims, our lawyers are able to represent clients across the country.
Call (800) 969-0488 or contact us online to speak with an experienced disability attorney. Consultations are free.
