Can You Collect Social Security Disability and Long Term Disability?

Navigating the world of disability benefits can feel overwhelming, especially when you’re facing health challenges. Many people wonder, “Can you collect social security disability and long term disability?” This is a common question, and the answer, fortunately, is often yes. But understanding the details and how these benefits interact is key to maximizing your disability income.

This article explores the intricacies of collecting both Social Security Disability Insurance (SSDI) and Long Term Disability (LTD) benefits. We’ll cover eligibility requirements, the application process, potential benefit offsets, and other factors you need to know. So, can you collect Social Security disability and long term disability?

Understanding Social Security Disability and Long Term Disability

Let’s break down the difference between SSDI and long-term disability insurance (LTD).

Social Security Disability Insurance (SSDI)

The Social Security Administration (SSA) offers Social Security Disability Insurance (SSDI) to individuals who have worked and paid into the system. They must also have a qualifying disability that prevents them from performing substantial gainful activity (SGA), basically, holding down a job. The condition needs to have lasted, or be expected to last, for at least 12 months or be terminal.

Long Term Disability (LTD)

Long-Term Disability (LTD) typically comes as a benefit through an employer, though you can also purchase long term disability insurance privately. This insurance provides income replacement if a disability stops you from working. Unlike SSDI, LTD is not tied to work history or Social Security contributions.

LTD often uses “own occupation” and “any occupation” definitions for disability. An “own occupation” definition considers you disabled if you can’t do your previous job. “Any occupation” takes into account if you’re able to work any job at all. It’s possible to qualify for both SSDI and LTD, but there’s no guarantee.

Can You Collect Social Security Disability and Long Term Disability?

The good news is that, in many cases, yes, you can receive benefits from both SSDI and LTD. Many people think their LTD eliminates the possibility of getting SSDI benefits or vice versa, but that’s not the case at all.

It’s entirely possible to be approved for both, especially since they have different eligibility requirements. Plus, some LTD policies even require that you apply for SSDI if you’re receiving LTD benefits. However, simply because you receive SSDI doesn’t obligate you to seek to collect long-term disability benefits.

The Impact of SSDI on LTD Payments

Now, here’s the catch: While you can get both SSDI and LTD at the same time, the amount you receive from LTD may be reduced. This reduction, known as an offset, prevents “double-dipping”.

Many LTD policies have clauses about offsetting SSDI benefits. It’s best to check your policy documents or talk to your insurance provider for specifics about offsets related to Social Security Disability Insurance. Your insurance carrier will be able to explain how your specific plan handles offsets.

Benefits of Filing for Both SSDI and LTD

Why even bother applying for both SSDI and LTD if one might offset the other? Consider this:

• Financial Security: Receiving benefits from either program provides a safety net. But receiving benefits from both sources, even with an offset, means you’re getting more income. This can be especially important when dealing with a long-term disability and the extra costs it can bring.
• Comprehensive Coverage: LTD often has a limited duration, potentially only lasting for a set number of years. On the other hand, SSDI typically lasts until retirement age, potentially giving you longer coverage if you meet eligibility requirements. This means you could potentially collect long term disability and Social Security for an extended time.

By filing for both SSDI and LTD, you’re hedging your bets. If one application is denied, you have the other. And if approved for both, you’re getting financial coverage from two different systems, offering a more comprehensive financial safety net.

Important Factors to Consider

When thinking, “can you collect social security disability and long-term disability”, there are important factors to keep in mind:

• Waiting Periods: Both programs involve waiting periods. With LTD, this is usually specified in your policy. For SSDI, there’s a five-month waiting period after your disability onset date before you can receive payments. If you’re eligible for LTD during SSDI’s waiting period, those payments can help with income during that gap.
• Definition of Disability: The definitions of disability differ between SSDI and LTD. SSDI has a stricter definition focusing on your ability to perform any job. LTD often has more lenient definitions like “own occupation,” meaning you might be eligible if you can’t do your specific job but could still perform other types of work. This is why it’s possible to receive LTD benefits while your SSDI application is pending.
• Applying: Start your LTD application process immediately because the waiting period begins upon your application. While you can wait on SSDI, starting sooner can benefit you in the long run, since the SSDI approval process takes much longer than the LTD process. And as mentioned, sometimes, you’ll need to have filed for SSDI to continue receiving your LTD benefits, depending on the terms of your plan.

Conclusion

So, can you collect Social Security disability and long-term disability? In many cases, the answer is yes. It’s entirely possible to receive monthly disability benefits from both programs. Navigating the complexities of these benefits is a lot easier once you understand the systems, requirements, and how they interact. Filing for both can greatly enhance your chances of maintaining some income while managing your disability. And although it’s best to speak with a qualified expert for guidance specific to your circumstances, having knowledge beforehand is always an advantage.

FAQs about Can You Collect Social Security Disability and Long-Term Disability

Can you draw long-term disability and Social Security at the same time?

Yes, it’s often possible to receive both Long Term Disability and Social Security Disability benefits concurrently. This means you could potentially be receiving payments from both your insurance company and the Social Security Administration.

Does SSDI offset long-term disability?

Many Long Term Disability policies contain offset provisions to prevent you from receiving more benefits than you earned while working. This means if you receive SSDI, your LTD benefits could be reduced to prevent you from receiving more income than you made before your disability. How much your LTD benefits are reduced, or offset, is determined by the terms of your specific LTD policy.

Can long-term disability garnish Social Security backpay?

It’s possible. If your LTD policy has a reimbursement clause and you receive backpay from Social Security for a period they were also covering, they may have the right to reclaim some or all of that backpay to offset their past payments to you. This is more likely to happen if you received a lump sum payment from Social Security covering a period where you were also receiving LTD benefits.

Can a person collect Social Security and disability at the same time?

If you’re referring to receiving Social Security Disability Insurance (SSDI) alongside a separate disability insurance policy, like Long Term Disability (LTD), the answer is often yes. However, as discussed, the LTD benefits may be reduced due to an offset provision. Your monthly benefit amount may be affected.

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