How does LTD insurance calculate SSDI backpay offset? Will I keep any of my $10,500?

Unfortunately, your LTD carrier is entitled to be reimbursed for the overlap period. They've been paying you the full $4,250 monthly while waiting for SSDI approval, and now that you're approved, you'll need to reimburse them for the SSDI portion. The calculation is typically: SSDI monthly amount ($3,450) × number of months they've been paying you while waiting for SSDI approval (from July 2023 to October 2024, so about 15 months) = approximately $51,750 total reimbursement. Since your backpay after attorney fees is only $13,100, they'll likely request all of it. Going forward, your monthly income will be: - $3,450 from SSDI - $800 from LTD (the difference between your LTD benefit and SSDI) Check your specific LTD policy language, but this is the standard practice for most insurers.

This exact thing happened to me last year!! My LTD company took my ENTIRE backpay and I had to fight them for WEEKS to get a small portion back. They initially calculated based on my gross SSDI amount before Medicare premiums and taxes were taken out which wasn't fair. Make sure they're only calculating based on what you actually RECEIVED from SSDI, not the gross amount!!! Also check your policy CAREFULLY about whether they can collect for the 5-month SSDI waiting period - some can't!!

Most LTD policies calculate this as a direct offset. So they'll subtract your monthly SSDI benefit ($3,450) from your monthly LTD benefit ($4,250), leaving $800/month that the LTD should continue paying you. For backpay, they typically calculate: (Monthly SSDI amount) × (number of months with overlapping coverage) = amount you owe them Remember that SSDI has a 5-month waiting period, so if your onset date was July 2023, your SSDI benefits would start for December 2023. So the calculation might be: $3,450 × (months from Dec 2023 to Oct 2024) = approximately $34,500 Since your backpay is only $13,100, they'll likely take all of it, but you won't owe more beyond that. Most LTD policies have language that limits their recovery to the actual backpay amount received. Check your specific policy for exact details - some are more generous than others.

THEY WILL TAKE IT ALL!!! happened to my brother last year and they even tried to say he owed MORE than the backpay! total scam if you ask me, you pay for LTD insurance and then they just reduce benefits when you get SSDI approval! what was even the point of the LTD??

Contact your LTD carrier right away and ask for their specific calculation method before they just take the money. Most follow this formula: 1. Calculate the monthly offset: Your SSDI monthly benefit ($3,450) 2. Determine overlap period: From your first SSDI payment month (likely Dec 2023 after 5-month wait) through current (Oct 2024) = 11 months 3. Total offset: $3,450 × 11 = $37,950 Since your backpay is only $13,100, they'll take all of it but can't collect the difference. Going forward, you'll receive $3,450 from SSDI and approximately $800 from LTD ($4,250 - $3,450). Important: Your LTD policy might have provisions about other offsets too (dependent benefits, etc.), so review it carefully. Also, they can only offset for months they actually paid you the full LTD benefit.

has anyone tried calling social security to ask them not to process the backpay until you check with LTD?? I heard someone did this but not sure if its possible

If you're trying to reach SSA to discuss backpay specifics and coordination with your LTD, don't waste hours on hold. I used Claimyr (claimyr.com) and got through to a live agent in about 15 minutes instead of the usual 2+ hour wait. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU. It was super helpful when I had questions about my backpay calculations and needed specific details to provide to my LTD carrier. The agent was able to give me an exact breakdown of my backpay months which helped when disputing my LTD company's offset calculation.

DONT let the LTD company calculate based on your GROSS SSDI amount!!! They tried to do this to me!! My SSDI was $2,876 but after Medicare premiums and tax withholding it was actually $2,513 that I received. The LTD company initially calculated their offset using the $2,876 figure which wasn't fair since I never actually got that full amount! Had to argue with them for weeks!

congrats on getting approved! my process took almost 2 years and dealing with the LTD company was actually harder than getting SSDI approved lol. make sure you get everything in writing from both ssdi and LTD about how they're calculating things.

Has anyone ever got their lawyer to negotiate with the LTD company? My cousin said his lawyer helped him keep more of his backpay by arguing something about the contract terms.

I went through this exact situation about 6 months ago! Your LTD company will likely take most or all of your backpay, but here's what helped me minimize the damage: 1. Request a detailed calculation from your LTD carrier BEFORE they take anything - they're required to provide this if you ask 2. Double-check that they're only calculating offset for months they actually paid you benefits (not any gap periods) 3. Make sure they're using the correct SSDI effective date - sounds like yours would be December 2023 after the 5-month waiting period 4. Verify they're not double-counting any dependent benefits if you have them In my case, my LTD company initially calculated wrong and tried to take $3,000 more than they were entitled to. Once I challenged it with documentation, they corrected the amount. You probably won't keep much of the $13,100, but you should still get your ongoing monthly LTD payment (around $800) plus your full SSDI going forward. The key is getting their calculation in writing and reviewing it carefully against your policy terms. Don't just let them take the money without explanation!

One thing I haven't seen mentioned yet - check if your LTD policy has any provision for "reasonable attorney fees" related to obtaining SSDI benefits. Some policies will reduce their offset claim by a portion of the attorney fees you paid to get approved, since obtaining SSDI benefits them too by reducing their ongoing payment obligation. Also, when you get their calculation, make sure they're not trying to collect for any months where you might have had a gap in LTD payments (like if you had to appeal or reapply for LTD at any point). They can only offset for months they actually provided you benefits. The math everyone's showing looks about right though - you'll likely lose most of the backpay but keep getting that $800/month difference going forward. At least you won't have the stress of waiting for SSDI approval anymore!

I'm new to this whole process but going through something similar. My SSDI was just approved last month after a 14-month wait, and I'm dreading dealing with my LTD company next. One question I have after reading through all these responses - does it matter if your LTD is through your employer vs. a private policy you purchased yourself? My LTD is through my former employer's group plan, and I'm wondering if those have different offset rules than individual policies. Also, for those who've been through this - how long did it take for your LTD company to actually process the offset once you notified them of your SSDI approval? I'm trying to figure out if I have time to pay some urgent medical bills before they take my backpay. Thanks everyone for sharing your experiences - this thread has been incredibly helpful in preparing me for what's coming!

I'm going through a similar situation right now and wanted to share what I learned from talking to my benefits specialist. The key thing is that most LTD policies can only recover what they actually paid out during the overlapping period, and they can't make you owe more than your actual backpay received. Based on your numbers, if your disability onset was July 2023 and SSDI has a 5-month waiting period, your SSDI would be effective December 2023. So they'd calculate: $3,450 (monthly SSDI) × 11 months (Dec 2023 - Oct 2024) = $37,950 theoretical offset. Since your backpay is only $13,100, they'll take that full amount but can't collect the remaining ~$24,850 difference. Going forward, you'll get your full $3,450 SSDI plus about $800/month from LTD. The silver lining is that your total monthly income stays at $4,250 - you're just getting it from two sources now instead of one. And at least the uncertainty of waiting for SSDI approval is over! Make sure to request their detailed calculation in writing before they process anything.

I'm dealing with a similar situation right now and wanted to add something I learned from my experience. When you contact your LTD company, ask them specifically about their "coordination of benefits" policy and whether they calculate offsets based on gross or net SSDI amounts. My LTD company initially tried to use my gross SSDI amount ($2,890) but my policy actually specified they should use the net amount after Medicare premiums ($2,756). That saved me about $1,500 over the calculation period. It's a small detail but worth checking since every dollar counts when you're dealing with medical expenses. Also, some LTD policies have a "minimum benefit" clause that guarantees you'll receive at least a certain amount monthly even after SSDI offsets. Mine guaranteed I'd keep at least $500/month from LTD regardless of my SSDI amount. Check if yours has something similar - it might be buried in the fine print but could make a difference in your ongoing monthly income. The whole process is frustrating but you're not alone in dealing with it. At least once it's sorted out, you'll have predictable income from both sources going forward.

I went through this exact situation about 8 months ago and want to share what I wish I had known upfront. The calculations everyone is sharing are accurate - your LTD company will likely take most or all of your $13,100 backpay, but there are a few things you can do to protect yourself: 1. **Get everything in writing first** - Don't let them just take the money. Request their detailed offset calculation and give yourself time to review it against your policy. 2. **Verify the effective dates** - Make sure they're using the correct SSDI effective date (December 2023 in your case after the 5-month waiting period) and only counting months they actually paid you LTD benefits. 3. **Check for policy provisions that might help** - Look for language about attorney fee reimbursement, minimum benefit guarantees, or whether they calculate based on gross vs net SSDI amounts. 4. **Document everything** - Keep records of all LTD payments you received and any gaps in coverage. In my case, my LTD company initially made calculation errors that would have cost me an extra $2,400. After I challenged it with documentation, they corrected the amount. You probably won't keep much of the backpay, but you should still receive about $800/month from LTD plus your full $3,450 SSDI going forward. The good news is that once this is resolved, you'll have stable, predictable income from both sources instead of the uncertainty of waiting for SSDI approval. Hang in there!

I'm new here but going through a very similar situation and this thread has been incredibly helpful! I was just approved for SSDI last month after an 18-month wait, and I've been dreading the conversation with my LTD company about backpay offsets. My situation is almost identical to yours - LTD monthly benefit of $3,800, SSDI monthly of $2,950, and about $15,200 in backpay after attorney fees. Based on all the advice here, it sounds like I need to: 1. Request their detailed calculation in writing before they take anything 2. Verify they're using correct effective dates and only counting months they actually paid me 3. Check my policy for any provisions about attorney fees or minimum benefits 4. Make sure they're not using gross vs net amounts incorrectly One question for everyone who's been through this - did your LTD company require any specific documentation from SSA, or did they just take your word for the approval and backpay amounts? I'm wondering if I need to get official statements from SSA before I contact my LTD carrier. Thanks to everyone sharing their experiences - it's making this process feel much less overwhelming knowing what to expect and how to advocate for myself!

I'm new to this community but found this thread incredibly helpful as I'm facing a similar situation. I was just approved for SSDI after a 16-month wait, and like many of you, I'm trying to understand how my LTD company will handle the backpay offset. After reading through everyone's experiences, it's clear that preparation is key. I'm planning to request a detailed written calculation from my LTD carrier before they process anything, and I'll be carefully reviewing my policy language for any provisions that might help minimize the offset amount. One thing I'm curious about - has anyone had success negotiating payment plans with their LTD company for the offset amount? My backpay is substantial but I have significant medical debt, and I'm wondering if they might allow me to keep a portion upfront for urgent expenses and pay back the rest over time. Thanks to everyone for sharing their experiences so openly. It's reassuring to know that even though the backpay situation is challenging, at least we'll have stable monthly income from both SSDI and remaining LTD benefits going forward. This community's advice about getting everything documented and challenging incorrect calculations could save people thousands of dollars!