Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

The ins and outs of disability insurance can sometimes be confusing leading to the question do you have to pay back disability insurance?

Yes, there are very specific cases when you have to pay back disability insurance, but if the specific cases do not apply to you, you do not have to worry about it.

Compare insurance quotes for disability policies with your zip code now!

The specific cases are fraud, benefits collected after death, and when private and social security disability benefits overlap. The following article will give additional information about disability insurance and the specific cases that require pay back.

Cases Requiring Pay Back of Disability Insurance Benefits

As stated above, you only have to pay back disability insurance benefits in very specific cases. The first case is fraud. Penalties for disability fraud can be severe. Fraud is any attempt to collect disability benefits under false circumstances. This includes knowingly or unknowingly providing false information on an application. The false information can include, but is not limited to:

  • Lying about your family income
  • Lying about your disability
  • Providing false or altered documents about your personal history, medical information, and finances
  • Continuing to collect benefits while no longer disabled

Benefits after death- In addition to fraud, another reason you have to pay back disability benefits is if benefits are collected after death. This can be intentional or just a lapse in the timing of paperwork. For example, some people delay informing the government or the private insurance company about the death of the individual receiving benefits in order to collect a few more checks. Other people report the death right away, but because the system takes some time to register new information, a check is mailed. In both of these circumstances, you need to pay all benefits back from the day of death.

Overlap- The third specific case that requires the pay back of disability insurance benefits is the overlap of government and private disability benefits. Private disability insurance is meant to make up the lack that is sometimes found in Social Security disability benefits.

This means that if the total amount of your private disability benefits and Social Security disability benefits exceed the legal limit, you must pay the difference back to your private insurance carrier. It is up to you to track and report overlaps as soon as they happen to avoid the penalties associated with overlapping benefits.

Free Insurance Providers Comparison

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

Compare Insurance Providers Rates to Save Up to 75%

 Secured with SHA-256 Encryption

Social Security and Private Disability Benefits

Social Security disability benefits are available to anyone who has a medically proven disability and has paid into social security through being a part of the work force. The only exception to this is individuals who were born with a disability or individuals who received their disability during childhood or adolescence. Once a disability is medically proven, an individual can apply for social security disability benefits. Approval is based on need, income, and the level of disability, mainly, is it temporary or permanent.

Social Security disability benefits don’t always cover all expenses and often leave individuals without a lot of financial options. This is where private disability insurance comes into play. Unlike Social Security disability benefits, private disability insurance must be purchased before a disability occurs.

Get free disability insurance quotes from several private companies now!

Therefore, it is meant to cover an unexpected disability, usually through an accident or a debilitating disease. Private disability insurance can often make up for the lack found in Social Security disability insurance, but there are legal limits that dictate how much you can receive.

Finding Private Disability Insurance

A good private disability insurance company will know the ins and outs of disability insurance. A good company will know the legal limits as well as the amount of coverage you would need if you were to become disabled. These providers are able to answer any questions you have and allow you to change your insurance policy and benefits as needed to coordinate with age and changing income levels. Be sure to have in mind what you are looking for in your coverage before contacting companies so you can see if they are a good fit for you.

Finding private disability insurance before it is needed is important. When looking for a disability insurance company, a great way to find an affordable deal is to shop online using an online comparison tool. This allows you to put all your information into one spot and receive several rates and quotes from top companies. These rates and quotes can then help you make the right decision. Comparing prices is still the best way to save on just about anything including disability insurance.

Try the online comparison tool by typing in your zip code and comparing disability insurance quotes today!