If I am Injured or a Disabled Person, Should I File for Social Security Disability
Benefits if I Have Long Term Disability Insurance?
First, it’s vital to understand that if you have long-term disability insurance, you can still apply for and receive SSDI simultaneously. There are caveats to doing this, but it may be in your best interests.
Certain benefit programs can conflict with each other (such as unemployment benefits and disability benefits). Still, if you now receive long-term disability, it commonly won’t affect your chances of receiving SSDI.
If you now receive long-term disability and file for SSDI, there might be some offsets, but it could overall be beneficial as you could have a higher net disability income if you file for both.
The Long-Term Disability (LTD) benefit is usually more significant than the SSDI benefit you may receive. However, in some cases, to qualify for LTD benefits, you will probably be required to file for Social Security Disability benefits.
Indeed, most employer-provided LTD policies obligate you to file for SSD benefits as part of the LTD eligibility requirements. Let’s say you get your LTD benefits through your employer; their insurer can invoke the offset provisions by having you file for SSDI, thereby offsetting the LTD insurer’s liability.
The good news is that you usually will have a higher total net benefit income by filing for both. Also, your SSD benefits commonly get COLA increases, while most LTD benefits do not. The LTD benefits you receive will, most likely, remain unchanged until you reach full retirement age. So, by filing for both SSDI and LTD, you are providing yourself and your family with a solid disability “safety net.”
Admittedly, all cases differ, and this can be complex, and filing for both can be challenging and cumbersome, so the help and guidance of a skilled, experienced SSD lawyer is mandatory if you want to obtain the total number of benefits you rightfully deserve.
If I File for SSD and LTD Benefits, How Will “Offsets” Affect My Benefits?
Since the application and approval process is much faster for getting LTD, most LTD benefits are calculated retroactively and for the future. Many applicants can receive an LTD decision in one to three months, but their SSD application may take six months to a year or more to process, and they begin to see benefits.
However, when you get your SSD benefits, you may receive a lump sum award for retroactive benefits while already receiving your LTD payments for many months.
When this occurs, your LTD insurance company will commonly invoke the policy’s “offset provision.” This provision states that you must “reimburse” the LTD insurer for the SSD benefits paid during the same eligibility period for retroactive benefits.
Usually, when you receive LTD and SSDI benefits, a monthly offset will also be applied going forward.
For example, if you file for SSD and LTD benefits simultaneously, your LTD application may be quickly approved, and you begin receiving $5,000 in monthly LTD benefits.
Ten months have passed, and your SSD claim has been approved. You could receive an SSDI retroactive payment of $20,000 plus an ongoing monthly SSD benefit. You have received $50,000 in LTD benefits ($5k/month for ten months = $50,000).
According to your LTD policy terms, you must reimburse the retroactive payment of $20,000 to your LTD insurer because your benefits for retroactive SSDI and LTD eligibility overlap. Also, your LTD benefit will usually be adjusted monthly due to the SSD payments made; all in all, however, by having both benefits, you still will be receiving more each month,
Are There Major Differences Between LTD and SSDI Insurance Benefits,
All disability All types of disability insurance are designed to lessen your financial hardship if you cannot work due to a disability.
SSDI coverage provides essential financial protection to workers, but you must have contributed to Social Security for a significant time.
Usually, all private disability insurance offers more extensive and liberal coverage and possibly more significant benefits.
To qualify for SSDI benefits, you must meet Social Security’s strict definition of having a disability.
For example, to get SSDI, you must show that:
- You can no longer work in your current job.
- You cannot work or adjust to another job.
- Your disability prevents you from returning to work for at least a full year.
The most valuable benefit of private disability plans is that they have less restrictive definitions of disability. While SSDI requires total disability, many LTD insurers will pay benefits without requiring individuals to prove they can do no work.
However, LTD plans can be very costly, and definitions of coverage vary, but most have the following three in common:
- They have “Own occupation” coverage – This insures you against disabilities that prevent you from performing the duties of your job.
- They will cover “Own occupation” with time limits – So they will help you when you cannot perform your occupational duties for a limited amount of time.
- They include “Any occupation” coverage – When your disability prevents you from performing any job.
Also, each situation differs, and LTD and SSD plans can be confusing and challenging. It’s always in your best interests to get the professional advice, knowledge, and guidance of a skilled Social Security Disability lawyer to know you’re doing what’s best for you and your family’s future.
Can I Qualify for SSDI If I Have Multiple Disability Conditions?
This is sometimes an overlooked situation, and if you are a disabled person suffering from multiple conditions, the total effect on you may be enough to qualify for SSDI benefits.
However, although you can apply for SSDI benefits if you have multiple disabling conditions, this process can be highly challenging. Many questions arise, and how you present your case to the SSA will often make all the difference in whether you are approved.
When you apply for SSDI benefits, you should list all of your physical and mental impairments that prevent you from doing your job.
Even if you think it is relatively minor, every impairment must be on your application. The analyst who reviews your SSDI application will combine their effects and evaluate your entire level of disability. They then will consider how your conditions work together to affect your ability to do your current job.
So, if you do have multiple conditions, you can be covered, but it is highly recommended that you work with an experienced disability lawyer who will ensure you submit a thorough, detailed, and correct application; applying with multiple conditions is complex, and if not done precisely, you most likely will be denied.
I Must Apply for LTD and SSDI Benefits; How Should I Proceed?
For LTD and SSDI insurance, you must prove that you suffer from a severe enough disability that you can no longer perform your current job or, in some cases, any substantial work.
Gathering all the documentation needed to demonstrate the severity of your disability is a time-consuming and challenging process. Yes, you can submit your application independently, but the likelihood of success will significantly increase when you work with an experienced, empathetic, and knowledgeable Social Security Disability lawyer.
The skilled and experienced Social Security Disability lawyers at Roeschke Law LLC are proficient and thorough in analyzing your case, gathering all pertinent data, and filling out all parts of these detailed applications correctly the first time.
Call them today at (800) 975-1866, and be assured that they are committed to getting you and your family all the benefits you now need and rightfully deserve.