I received a lump sum from SS.. I have no problem with the fact that LTD covered me until SS kicked in, and that they should be paid back that amount. My challenge is that their calculation is WRONG. They blatantly lied to me about how the calculation worked and tried to give me the old "confuse" the issue until you give up trying to understand routine. What they don't know is I was an accountant for 23 years, and the logic of their calculation is in error, (this is not my opinion, it is a fact). In my case it adds up to several thousand dollars. I was told, "that's just ther way the calculation works", but, ... that doesn't make it correct. My thought is, if "that's the way we calculate it", then they may have mislead (to put it nicely) thousands of policyholders by deceptive logic in their calculation methods. I have not resolved anything with them as of yet, but I can shoot holes in their methodology... which I believe is not only erroneous, but may have been intentionally erroneous based on the illogical, misleading, intent to confuse arguments I was presented with.
I also have an 18 year old who presumably could apply for benefits, though I have no control over whether he does that. SS would then pay HIM (and that $ would be taxable to HIM). I have no claim on that $, nor would I have been able to anything to obtain it (other than be disabled). I cannot help that SS has a really stupid rule about paying "adult" children (over 18) directly. LTD says they will claim that $ as an offset. It is not my $, nor do I have any control in obtaining it, nor do I have any control what is done with it. How can I pay back something I never recieve. And if I happened to get my son to pay it back, he would still owe taxes on it... (as if my disability isn't burden enough). This seems unbelievable to me that they could ever win this kind of judgement... I've seen a few other posts about this... I am dumbfounded. I really don't care what the contract says (a contract I never signed), if it claims money that cannot be claimed then that part of the contract is void. I mean, what if the contract said, "upon SS approval, every member of your family, and all your neighbors must chip in $1000 to help repay this rich insurance company for the converage (or lack thereof) that they have provided." To me that is not enforceable... my son had nothing to do with my employers contract, he is just following what SS says they will pay...LTD has no contract with him, just like they would have no contract with my immediate family, or my neighbors (despite what the contract might say).
Another thing, while I am on a roll.... LTD, who claims to pay family benefits with the purpose of then reclaiming those SS family benefits as theirs, did not pay me one dime of "family" benefits. It was never a part of the calculation. They did however, manage to knock my "income" down materially by not including bonuses, additional PTO times, overtime wages, etc.. My question is this... how can they ask for reimbursement of family benefits when they paid NO family benefits? That , my freinds, is a very good question.
Anyone got any advice for me, I am ready to do battle... I will pay LTD exactly what they deserve, nothing more, nothing less.
EDITED TO REMOVE INSURERS NAME. CEM