Are You Making a Big Mistake By Signing a Pre Authorized Withdrawal Form that Your Long Term Disability Carrier or Allsup Requests? Yes!
If you are a long term disability policy holder, you should get your disability policy out immediately and review it because you may have an offset provision. Your Allsup policy may say that a long term disability carrier can reduce your long term disability benefits by the receipt of your Social Security Disability benefits. But, what happens when you get a retroactive Social Security benefit? Your long term disability carrier, such as CIGNA, may ask you to sign a repayment agreement that requires you to repay any over payment.
Social Security overpayment attorney Nancy Cavey has no problem with that. However, many long term disability carriers will have you sign an agreement that allows them, or an authorized Social Security representative, such an Allsup, to withdraw a “amount not exceeding the obligation from the account identified below on or after the date my Social Security award is deposited in the account”.
Unfortunately, many times that seems a big fight about the amount of the overpayment, but you are not in the drivers seat anymore because that money has been whisked out of your bank account because you signed a pre-authorized withdrawal form and agreement.
If you signed a pre-authorized withdrawal form and agreement, you should cancel it immediately by sending written notice to your insurance company, the Social Security representative company, such as Allsup or your financial institution.
Why you still will be obligated to repay any overpayment, you want to be in control over that repayment. Particularly, since it’s so common to have a dispute about the amount of the overpayment.
Contact us today to discuss your options with your long term disability options.