Many individuals who are unable to work due to a disability may be eligible to receive benefits from both Social Security Disability Insurance (SSDI) and a long-term disability (LTD) insurance policy. However, navigating the complexities of collecting both types of benefits can be challenging. Stephen H. Hagler, LLC, explores the interplay between SSDI and LTD benefits and provides insight into the considerations that individuals should keep in mind.
SSDI vs. LTD
It’s important to understand the distinction between SSDI and LTD benefits. Social Security Disability Insurance (SSDI) is a federal program that provides financial assistance to individuals who have a qualifying disability and are unable to engage in substantial gainful activity. The eligibility for SSDI is based on a person’s work history and the payment of Social Security taxes. On the other hand, Long-Term Disability (LTD) benefits are typically provided through an employer-sponsored or privately purchased insurance policy. LTD benefits are intended to replace a portion of an individual’s income if they are unable to work due to a disability.
One of the key questions that individuals often ask is whether they can receive both SSDI and LTD benefits simultaneously. The short answer is yes, it is possible to collect both SSDI and LTD benefits. However, there are some important considerations to keep in mind.
What You Should Know
First, it’s essential to review the terms of the LTD policy. Many LTD policies include provisions that offset the amount of benefits by the amount received from SSDI. This means that if an individual is approved for SSDI, the LTD benefits may be reduced by the amount of the SSDI payment. As a result, the total amount of benefits received remains relatively consistent, but the source of the benefits may shift.
Additionally, individuals should be aware of the impact that receiving SSDI may have on their LTD benefits. Some LTD policies may require recipients to apply for SSDI benefits, and if approved, the LTD benefits may be adjusted accordingly. Furthermore, the definition of disability and the criteria for eligibility may differ between SSDI and LTD policies, which can lead to variations in benefit amounts and approval processes.
Another important consideration is the potential tax implications of receiving both SSDI and LTD benefits. While SSDI benefits are generally not taxable, LTD benefits received through an employer-sponsored plan may be subject to taxation. It’s advisable for individuals to consult with a tax professional to understand the tax implications of receiving both types of benefits.
Augusta Social Security Disability Attorney
Navigating the process of applying for and receiving both SSDI and LTD benefits can be complex, and individuals may benefit from seeking guidance from the legal professionals at Stephen H. Hagler, LLC, who specialize in disability benefits. We can provide valuable assistance in understanding the terms of your LTD policy, navigating the application process for SSDI benefits and ensuring that you receive the maximum amount of benefits to which you are entitled.
Contact our office in Augusta, Georgia, to schedule a free consultation.
Posted on behalf of Stephen H. Hagler, LLC