If you have Long Term disability insurance, can you draw your private insurance PLUS Social Security Disabilit

Question

Do you get both or just one or the other? How is it decided which you'll get if the answer is only one of them?

Answer 1

Well, SSDI  usually takes a WHILE to kick in  - it can be years.  HOWEVER, your private LTD policy PROBABLY has a clause in it, where you agree that if you're double dipping (collecting benefits from two different sources, like SSDI) they are entitled to reimbursement of what they've paid out.

Additionally, the definition of disabled on a LTD policy is usually much more loose (ie, easier to collect on) than SSDI.  So it's very possible that you'd qualify under the LTD, but not SSDI.

You have to file two different claims.  They EACH decide if you qualify for THEIR coverage.

Answer 2

It is true that to qualify for SSDI you have to be pretty much incapable of doing anything. When it finally does kick in, depending on the insurance company, they will usually pay out the difference  left over from the SSDI up to your maximum monthly benefit.

For example, your monthly benefit is $3000

you become eligible for SSDI at a rate of lets say $1250/mo

generally the insurance company will only pay you $1750/mo which combined with the SSDI will bring you back to the benefit you have been paying them for. That will continue for as long as your benefit period is any where from two years to age 65 at which time it will drop off and you'll only get the SSDI