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Repaying Insurance Company for Long Term Disability Payments received

I have received Long Term Disabilty payment from an insurance company I've paid for over 20 years.

 

Now that I have Social Security - they want all the money they've paid me?

 

Doesn't feel right - what would or could happen if I don't repay them?


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1 helpful answer

Lord, let me be the kind of person my dogs think I am.

First, you should get out your LTD policy and read it to find out if the policy actually says that you have to do that.  If you find anything in the policy that gives them the right to do that, then I would refuse to pay.  In addition, I would seek out a disability attorney and ask him/her if the LTD company has the right to do that.  You should get an appointment for a consultation.  Initial consultations are usually free, but I would ask about that before I made the appointment.  May I ask...if you were on LTD, why didn't you apply for SS Disability?  Or did you?  I know that I am still on LTD AND I'm on SS Disability.  The SS Disability makes me eligible for Medicare, which really helps.  If the disability attorney tells you that the LTD company does have that right, then unfortunately you will have to pay or risk your credit being ruined, or worse.  I would bet they would work out a payment plan for you if you ask.  Good luck!

Posted 2009-09-05T03:25:06Z
L.S. was invited by Yedda to answer this question.

 
Theresa J Daly
(deleted account)

The answer above sounds helpful as to specific advice.  I have been on Social Security Disability since 1993.  I haven't yet run into any pay back questions.  However, despite not being a practicing lawyer, my guess from my law school days is that they do not have the right to make you repay any of the benefits you have received.  The answer above said to read the contract.  Many contracts are actually illegal as written.  If a contract is "unfair, or unconscionable", it sounds fraudulent to demand any repayment from you.  You could have your lawyer simply challenge the contract as illegal and stop any legal ruling that you owe money.

Many years ago in 1992 I was on unemployment through the State of Calif. and I had health problems and couldn't work.  I then was advised to apply for disability.  As soon as my disability was approved, the State unemployment office sent me a big bill for every little unemployment payment they had ever given me.  I also had a strong legal challenge, but with health problems didn't have the strength to challenge it.  So I had to repay them about $3,000-$4,000.  However, if I had fought it, I'm sure I would have won.  They were wrong in their reason for charging me.

Good luck.  I think it's clearly a case of fraud against you and you should not pay back anything.  With a good lawyer, I know that will be the outcome.

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