There are many moving parts when it comes to receiving disability benefits. Our DeLand Long Term Disability lawyer explains how the Social Security offset fits into the LTD puzzle.
Many employers offer their employees the option of a Long Term Disability (LTD) policy. The employer and employee pay into these group policies that provide an avenue for income if the employee cannot work due to illness or injury. Self-employed individuals can also purchase a private LTD policy to protect their income.
Private Long Term Disability policies are not the only way an individual can receive financial assistance after a disability. Social Security disability insurance (SSDI) is a federal program that provides benefits to individuals who have a disability that prevents them from engaging in substantial gainful activity. SSDI is administered by the Social Security Administration (SSA) and is funded through payroll taxes.
These two programs can work together, and we recommend that you consult with a DeLand Long Term Disability lawyer to ensure you are getting the best benefits from each policy.
What Is The Difference Between LTD and SSDI?
Both SSDI and private Long Term Disability insurance serve to provide financial assistance to individuals who are unable to work due to a disability. However, eligibility requirements, coverage, and how they are funded and administered differ. LTD benefits cover a percentage of your pre-disability income and are often reduced if you have another source of income.
Another source of disability income can be SSDI, and many LTD policies stipulate that you must apply for SSDI benefits in addition to seeking the benefits from your LTD policy. Why? Because of the Social Security offset.
What Is The Social Security Offset?
If you receive Social Security benefits, your LTD insurance company can deduct – or offset – your benefits with the amount you receive for SSDI. Your insurance company saves money by ensuring you are not receiving benefits from multiple policies.
It costs nothing to apply for SSDI, but it can be challenging to be approved. Social Security disability has strict eligibility requirements, and if you are denied, your LTD policy may force you to exhaust your appeals. As you can imagine, the process can be lengthy. Meanwhile, you are not getting the benefits you need and are entitled to.
Can LTD and SSDI Work Together?
Once your benefits are approved, these two policies can work together.
Your Long Term Disability policy may offset the amount you receive in Social Security disability benefits, resulting in a reduced payment from the Long Term Disability policy.
Why You Need A DeLand Long Term Disability Lawyer
You can see how these two types of policies can be complex – in application, appeal, and benefit reception. Engaging an experienced LTD lawyer can significantly boost your chances of receiving the maximum benefits stipulated in your policy. Insurance companies may pay less than you are entitled to, so their bottom line looks better.
The Herbert M. Hill, P.A. team has extensive experience with all major insurance companies. We know how they operate and how to get you the highest and best result possible. Contact us today to discuss your Long Term Disability policy. We look forward to working with you.