SSDI backpay caused $75k LTD overpayment - negotiating settlement with insurance company?

Yes, this is absolutely negotiable! When I received my SSDI backpay in 2022, I owed my LTD carrier about $42,000. I called and simply asked if they would accept a lump sum settlement at a reduced amount. They initially offered a 15% reduction, but I countered with 40% off. We eventually settled at 30% reduction - I paid about $29,400 instead of the full amount. The key is to have the lump sum ready to transfer immediately once they agree. They value getting funds now rather than waiting years, especially since some people eventually stop paying.

my cousin got a 50% reduction last year but they made him sign something saying he couldn't ever apply for benefits with them again. be careful what your agreeing to

DONT NEGOTIATE!! Pay what you owe!!!!! You signed a contract with them and they paid you when you needed it. This attitude of trying to get out of legit debts is whats wrong with society today.

I negotiated my LTD overpayment down by 35% after my SSDI approval last year. Here's what worked for me: 1. Call the recovery unit directly (not the general customer service) 2. Emphasize that you're offering immediate payment vs. years of collections 3. Mention that your financial situation remains precarious despite SSDI approval 4. Start with offering 50-60% of the total amount 5. Have documentation of any ongoing medical expenses that impact your ability to pay The key is being persistent but professional. My first rep said no reductions were possible, but when I called back a week later, I got someone who was authorized to negotiate. These companies have settlement authority built into their processes - it's just a matter of reaching the right person.

im in a similar situtaion but mine is only 23k. following this to see what people say.

This is very common with SSDI approvals. The LTD overpayment occurs because most policies contain an "offset provision" that reduces your LTD payment by the amount of any SSDI benefits. Since SSDI approvals often come with substantial backpay, this creates the large overpayment. Regarding settlement: Yes, insurance companies regularly accept reduced lump sums. The typical range I've seen is 20-40% reduction, depending on: - Your documented financial hardship - How long the payment plan would otherwise take - Your likelihood of maintaining payments - The specific company (some are more flexible than others) If you have the funds available, I'd recommend starting with an offer around 65% of the total. Have it ready in writing, emphasizing that you're offering guaranteed immediate payment instead of uncertain long-term collections. Include basic documentation of any financial hardship if applicable.

FYI - Getting through to someone with authority to actually negotiate these settlements at insurance companies can be extremely difficult. I spent WEEKS trying to reach the right person at my LTD carrier when I was in your situation. I eventually used a service called Claimyr (claimyr.com) to get through to a real person at the insurance company's settlement department. They have a system that navigates the phone trees and waits on hold for you, then calls you when a representative is on the line. Saved me hours of frustration. You can see how it works in their video demo: https://youtu.be/Z-BRbJw3puU With the right person, I was able to negotiate my overpayment down by 32%. Don't accept the first offer - they expect negotiation.

wait did u say ur paying $950 a month and it will take 6 years?? thats almost $70k! i thought u said u owe $60k?? check their math!!!

I forgot to mention in my earlier comment - make sure you understand how the LTD company calculated the overpayment. They should only be counting the overlap period when you received both SSDI and full LTD payments. I've seen companies try to claim overpayment for periods before your LTD even started, which is incorrect. Ask for an itemized statement showing each month's calculation.

One time i had to deal with social security office for like 3 weeks trying to get them to fix a mistake on my record... never again!!! They kept transfering me to different departments and nobody knew anything.

Another important tip: If you negotiate a settlement, get a "Payment in Full" settlement letter BEFORE sending any money. The letter should clearly state that your payment constitutes complete satisfaction of the debt with no further obligation. I've seen cases where people paid the negotiated amount but the company later claimed it was just a "partial payment" because the paperwork wasn't clear.