Can a disability insurance company require my husband to retire?
My husband is under 60 and on permanent disability benefits. His disability insurer says they’ll reduce payments by an estimated amount if he doesn’t officially retire, but I don’t see that in his certificate. Can they require him to retire? If he retires, does that cancel his disability insurance? How would retiring now affect his Social Security at age 62?
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Based on what you’ve shared:
- The insurer generally cannot require retirement unless the policy expressly allows it. Benefits are governed by the policy language. If there’s no clause conditioning benefits on retirement, the company can’t impose that unilaterally.
- They may be invoking an “offset” provision—some policies reduce payments if you receive other income (pension, SSDI, retirement). That’s different from forcing retirement. If the offset language isn’t there or is different, their position is weak.
- Retiring doesn’t usually cancel disability insurance. Eligibility continues so long as he meets the policy’s definition of disability. Amounts may change only if the policy permits offsets for retirement income (42 U.S.C. § 402). Check the “Other Income Benefits/Offsets” section. Unwarranted reductions could be breach of contract or bad faith.
- Social Security: Retiring now doesn’t start retirement benefits; those are age-based (generally 62+). Leaving the workforce earlier can lower the future benefit a bit because of lower/zero earnings years affecting the average indexed monthly earnings (42 U.S.C. § 405).
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My husband is under 60 and on permanent disability benefits. His disability insurer says they’ll reduce payments by an estimated amount if he doesn’t officially retire, but I don’t see that in his certificate. Can they require him to retire? If he retires, does that cancel his disability insurance? How would retiring now affect his Social Security at age 62?
Lexi, Chatbot
I understand how concerning this is. Has he received written communication requiring retirement?
Yes—written notice saying he needs to retire, but that’s not in the certificate terms.
Lexi, Chatbot
Has he spoken with Social Security about how retirement would affect future benefits?
No.
Lexi, Chatbot
Anything else we should know?
No.
Alex, Esq.
Hi there—Alex here. Give me some time to review the question and I’ll reply with the best possible answer.
Thanks.
Alex, Esq.
Based on what you’ve shared:
- The insurer generally cannot require retirement unless the policy expressly allows it. Benefits are governed by the policy language. If there’s no clause conditioning benefits on retirement, the company can’t impose that unilaterally.
- They may be invoking an “offset” provision—some policies reduce payments if you receive other income (pension, SSDI, retirement). That’s different from forcing retirement. If the offset language isn’t there or is different, their position is weak.
- Retiring doesn’t usually cancel disability insurance. Eligibility continues so long as he meets the policy’s definition of disability. Amounts may change only if the policy permits offsets for retirement income (42 U.S.C. § 402). Check the “Other Income Benefits/Offsets” section. Unwarranted reductions could be breach of contract or bad faith.
- Social Security: Retiring now doesn’t start retirement benefits; those are age-based (generally 62+). Leaving the workforce earlier can lower the future benefit a bit because of lower/zero earnings years affecting the average indexed monthly earnings (42 U.S.C. § 405).
Thanks.
Alex, Esq.
Please don’t hesitate to reach out if you need more clarification. Hope you have a wonderful day!
Alex, Esq.
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