My husband became disabled 2 months before his 66th birthday and was at the time employed full time. He is on short term disability until the beginning of May, and on his 66th birthday, in January, began receiving Social Security retirement. We never applied for Social Security Disability and now he is over the age to do so, anyway. He had put the Social Security retirement benefit into motion before his disability, and would have been receiving it as part of his annual income regardless of his disability. My question is, our long term disability insurer indicates they will offset for his Social Security Retirement benefit (not SS Disability), even though by doing so they are reducing his income to more than the 66% the policy indicates. I.E., if his income were 5,000 per month, 2/3rd of disability would be 3,300. But his income is actually 7,000 due to a 2,000 a month Social Security Retirement benefit. So, his 3,300 disability benefit is actually less than 50%. If the policy indicates he will be entitled to 2/3rd of his income how is it legal for them to then reduce his total income to 48%?
New Jersey

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.