It is possible to receive payments from both Social Security Disability Insurance (SSDI) and Long-Term Disability Insurance (LTD) at the same time if you cannot work due to a serious health problem. Doing this helps increase the total amount of money you receive, making it more stable financially for you. In other words, you can get help from both a private insurer (LTD) and the government (SSDI) when you’re not able to work.
Making Sense of Offsets
If you receive disability payments from an employer-provided LTD program, or a private policy you paid for yourself, you not only can file for SSDI benefits, your LTD policy may require you to do so. This is because most LTD insurance policies contain an “offset provision” that allows the insurer to reduce the amount of benefits they pay you by the amount of SSDI benefits you receive.
Generally, the offset calculations are simple—your monthly LTD benefits will be reduced by the amount of SSDI benefits you receive. A lump sum SSDI payment can add a layer of complexity. In most cases, disabled workers receive LTD benefits before qualifying for SSDI benefits. If you receive a lump sum SSDI payment retroactively, you may owe that payment to the LTD insurer.
The good news about offsets is that they will not cause your total monthly disability income to decrease. They will simply reduce the amount of that monthly income the LTD insurance company is responsible for paying.
For a free legal consultation, call 800-562-9830
Potential Advantages
Obtaining both long-term disability and Social Security disability insurance benefits may provide meaningful advantages, including:
- A financial safety net: If one of your disability payments is cut off for some reason, then you will still have the other one to provide you with sustaining income.
- Helping you keep cost of living increases: SSDI provides periodic cost of living adjustments (COLA), which generally do not result in a higher offset to LTR benefits. When your COLA increase does not trigger an offset, your overall disability income will be higher than before.
Maximizing your disability payments is a complex process that calls for experienced legal guidance. We will carefully analyze your situation to determine the course of action that best supports your financial future.
Get a Free Consultation from a Disability Attorney
The disability claim attorneys at Marc Whitehead & Associates have been representing clients in both LTD and SSDI claims areas since 1992. We can provide you with the advice and advocacy you need to maximize your monthly disability payments and stabilize your financial future. Get in touch with us today to speak with an attorney who can assist you. There is no charge for consultations.
Call or text 800-562-9830 or complete a Free Case Evaluation form
