Mistakes and omissions happen, especially when it comes to insurance companies. If you feel that you are being underpaid or are receiving an incorrect amount, please read this guide. If any of the following apply to you, contact for help in getting your benefits corrected.
Know your actual benefit amount that you should be getting. Most LTD policies pay a benefit amount between 60-80% of your monthly salary, also known as pre-indexed earnings, before taxes. For example, if you make $4,000 month before taxes when working, and your benefit amount is 60%, then your monthly LTD payment should be $2,400.
Deduct any offsets that may apply. The biggest offsets that often apply in most cases are from other sources of disability income, such as Social Security disability or workers’ compensation. So for example, lets say your SSDI benefit is $1,400 per month. Using our first example above, your insurance company would reduce its benefit payment to you by what Social Security is paying you. Thus, your new monthly LTD benefit would be $1,000, while Social Security pays the rest.
Now consider any other “special offsets.” Here is where things get tricky. Sometimes insurance companies also offset your amount by dependents or spousal disability benefits. Although some policies allow for this, the insurance company may be calculating the wrong amount or length of time in which they are offsetting your benefits. Insurance companies also often miscalculate the amount of a workers’ compensation settlement, taking our more from your benefits than they should.
We have also experienced underpayment in terms of jobs that pay commission or in instances of overtime pay. We may be able to help you correct the underpayment and get your the lost benefits that you have been without.
Call our free consultation and advice hotline: 855-999-1969 for help.