Q: Can Social Security disability insurance payments offset long-term disability benefits?
Seeing an Arizona
In Arizona, some large disability insurance companies have Supplemental Social Insurance riders (“SIR”) with relatively
Due to the lengthy process of applying for SSDI in Arizona, such a mandate will, at a minimum, impose “painful delays” on the now-disabled and financially-vulnerable insured, specifically when money is needed most. And worse, if SSDI is approved, the LTD benefits are reduced…leaving some people to wonder if having long-term disability insurance with such contractual language even pays.
In Arizona, recent legal challenges to policies that offset LTD with SSDI payments have been unsuccessful, with Arizona courts rejecting the standard contractual argument by policyholders that the language is unclear or ambiguous. As many of the policies which were the subject of these challenges were marketed to professionals, the clear-language argument was a tough sell due to the relatively higher education of the insured-signer and the very clear language itself. Also rejected in Arizona was the argument that such clauses should be void as a matter of public policy—an argument that other states have accepted.
If you or a loved one is
Contact us at Roeschke Law today to request a free consultation. With offices in Phoenix, Tucson, and Tempe, our firm is devoted exclusively to helping disabled Arizonans throughout the state obtain the benefits to which they’re entitled.