Individuals who receive long-term disability benefits should be aware of offset provisions in their benefits plans that might drastically reduce the amount of disability benefits that they are eligible to receive. Offset provisions are provisions in your disability insurance policy that allow your insurance company to reduce your disability benefits by any other source of income that you receive or may be eligible to receive as a result of your disability. These provisions are designed to prevent you from “stacking” benefits and providing you with excess income based on your disability.

One of the most common types of disability benefits that are subject to offset provisions are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits. Therefore, if you are awarded SSDI or SSI benefits, your long-term disability benefits may decrease by the amount of monthly SSDI or SSI benefits that you are receiving.

Other common source of income for disabled individuals who reside in California is state disability insurance benefits. Again, the amount of state disability benefits that you receive is likely to directly reduce the amount of long-term disability benefits that you are eligible to receive from your long-term disability plan.

In some cases, your disability might be the result of an accident caused by a third party, such as a motor vehicle accident. If you receive a settlement from the third party’s insurance company for your injuries, then the settlement amount is likely to reduce your long-term disability benefits, as well.

ERISA plan documents and even the summary plan description can be difficult to comprehend and even misleading at times. The impact of other benefits that you may receiving on your long-term disability benefits can be substantial, and you should be aware of the potential for a decrease in your benefits. At Bonnici Law Group, we offer you client-centered representation at all stages of the long-term disability benefit claims process. When you need the kind of help that only an experienced long-term disability benefits attorney can offer you, contact Bonnici Law Group at 858-261-5454 or help@bonnicilawgroup.com.