If you were receiving disability insurance benefits on a regular basis, where was your money going?  How were you receiving the money?  Did you receive a check?  Were you receiving direct deposit?  As long as everything is going well and you are receiving your benefits, then chances are you don’t have a problem.  But if you were receiving benefits and then received a denial letter stating that your benefits were being cut off, you might encounter some difficulties if you are reinstated…

What could go wrong with receiving benefits again after a denial?

Disability insurance benefits may be essential to your livelihood, so is there a chance there could be an issue when getting re-approved?

What happens if you can’t afford a vehicle that you purchased not too long before going out of work?  What happens if you cannot afford to live in the same house or apartment you were in while working?  What happens if any of your possessions are owned by the very bank that you are receiving benefits through?  What happens if the bank repossesses an item and/or claims a payment is due?

We have seen circumstances where benefits were cut off, and after they were reinstated, the direct deposit went to the same bank account it was deposited in before the benefits had been terminated.  The problem was that in the time benefits were not being paid, the claimant’s vehicle had been repossessed by the same bank the check was being deposited in to.  Despite the account supposedly being closed, the bank took the money and applied it towards the monies and fees owed on the vehicle.  The same vehicle that wasn’t even in the claimant’s possession any longer.

What should I do if my benefits are terminated or I’m having issues with my financial institution?

Finding an alternative way to receive your benefits (whether immediately or upon notice of approval) would probably be the best plan until you adjust to the new status quo.  You could open an account at a different financial institution and provide the insurance company with the new account details or tell the insurance company to start sending you checks instead of direct deposit.  When you undergo dramatic changes from working and receiving full pay, to receiving disability benefits at a reduced income, to then having no income when denied disability insurance benefits, an adjustment period while getting back to receiving benefits again can be appropriate.