Are you prevented from working full-time because of your medical condition? If so, you need the maximum available disability benefits to support yourself and your family members. Depending on your circumstances, benefits may be available through SSDI and/or a private disability policy from your employer, your spouse’s employer, or one that you purchased on your own.
If you are applying for or already received long-term disability benefits (LTD benefits), it is imperative that you understand what SSDI offsets are and how they work. Your long-term disability benefits may be partially offset. In this article, you will find an overview of the key things that you need to understand about SSDI benefits and offsets for long-term disability benefits.
What is an Offset and Why Does it Exist?
Simply put, an “offset” is a term for a provision within a disability policy that allows an insurer to take a deduction from your benefits to account for other sources of income that you are receiving. The Social Security disability program has its own offsets for applicants who are receiving state-based workers’ comp benefits. As explained by Social Security Administration (SSA), offsets exist to ensure that an applicant’s total disability benefits “are not excessive.”
Many Private LTD Policies Require Beneficiaries to Apply for SSDI
Most people who have private long term disability coverage have a policy from their employer or their spouse’s employer. These types of LTD policies are regulated by a federal statute called the Employee Retirement Income Security Act (ERISA). Most ERISA long term disability plans require policyholders and other beneficiaries to file for SSDI benefits as required to get LTD benefits. In doing so, they also state the benefits will be “offset.”
Social Security Disability Offset: Your Insurer May Offset the Amount You Receive in SSDI
When you apply for SSDI benefits and LTD benefits, your private insurance company will likely take your Social Security disability claim into account. If you are approved for SSDI benefits, the insurer can then offset your long-term disability benefit by the amount that you get in monthly SSDI compensation. In other words, your LTD benefit will be reduced by your SSDI benefits. Often, LTD benefits are higher than SSDI benefits—meaning you may receive your full SSDI benefit and then additional LTD benefits, with an offset applied. SSDI claims and LTD policies do not have identical standards. You may qualify for long-term disability benefits even if your SSDI claim is denied. In that type of case, no offset would apply.
An Experienced Social Security Disability Lawyer Can Help You Maximize Your Benefits
Disability claims are complicated—especially so when you are applying for both SSDI benefits and LTD benefits and you have to deal with offsets. It is crucial that you are able to navigate the process in a manner that puts you in the best position to maximize your total disability compensation. The best thing is you can choose your representative for SSDI benefits by looking for an attorney who has experience handling LTD claims and LTD offsets. Your attorney will protect your legal rights and financial interests.