Effects of closing off insurance and collecting severance


#42

Does your policy say severance is deducted from LTD?
If it doesn’t say then it might not be.
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#43

Yes I’m pretty sure.


#44

Your policy should mention if severance is deducted from LTD.

Mine says it doesn’t.


#45

When I called she said it’s a deductible.
My question is if it’s suspended justvtge 10 months or based on the gross amount?


#46

I wouldn’t know that. Probably total amount. You should confirm that with your insurer.

Or if somebody had this experience may share it here.


#47

@David_Brannen
How likely is the insurer saying what they typically do without knowing what the policy actually says?


#48

The insurer says its seen as income.

I just don’t know if they look at the gross or the net over10 months


#49

My policy only refers to specific types of income related to the disability (employment income is not mentioned).
I think the policy must specifically use the wording “severance” but that is from a quick google search and the top hits were lawyers trying to make money.

I would guess it is gross but ask the insurer.


#50

Thank you for checking