When a disability leaves you unable to work, you have options for receiving the financial assistance you need. Two of the most common sources of that assistance are Long Term Disability (LTD) insurance and Social Security Disability Insurance (SSDI). While both provide financial benefits to qualifying individuals who cannot work, they differ in key ways. So, what are the differences between long term disability vs SSDI?
Is Social Security Disability Insurance (SSDI) the Same as Long Term Disability (LTD)?
Both Social Security Disability Insurance (SSDI) and Long Term Disability (LTD) provide financial assistance to people who can no longer earn a living due to a disability. But is Social Security the same as long-term disability?
The answer is simple: No, SSDI and LTD are not the same. SSDI provides benefits through the federal Social Security program, while LTD comes from a private insurance plan, often through an employer.
SSDI eligibility requires a substantial work history and involves strict medical standards set by the Social Security Administration. LTD, on the other hand, depends on the policy terms outlined in your insurance contract.
LTD often pays a higher percentage of your salary than SSDI, sometimes up to 60-70 percent of your pre-disability earnings. SSDI provides a flat benefit based on your lifetime earnings record, which usually results in lower payments.
Approval timelines for these benefits also differ. SSDI claims can take months, or even over a year, to be approved. In contrast, LTD claims generally process faster, depending on your insurer.
What Qualifies as a ‘Disability’ for SSDI and LTD?
Both SSDI and LTD require proof that your condition prevents you from performing substantial work, but the definitions vary.
Social Security considers you disabled if any of the following apply:
- You cannot perform any substantial gainful activity
- Your condition lasts, or is expected to last, at least 12 months or result in death
- Medical evidence supports your inability to work
For LTD, your policy may define disability in one of the following two ways:
- You cannot perform the job you held before your disability
- You cannot perform any job suitable for your skills, education, or experience
Can You Collect Both SSDI and LTD?
Yes, in many cases, you can collect both SSDI and LTD. Collecting both benefits can significantly reduce financial stress when facing a disability. However, you should remain aware of the potential pitfalls of receiving the two simultaneously.
Insurance companies often coordinate benefits to ensure you do not receive more than 100 percent of your pre-disability income. However, you should still notify your LTD insurer if you apply for SSDI. Failure to report SSDI approval can result in repayment obligations or even jeopardize your LTD benefits.
An experienced disability benefits attorney can help you understand your rights and responsibilities when seeking both SSDI and LTD.
Will My SSDI Benefits Reduce My LTD Benefits?
Yes, SSDI benefits usually reduce LTD payments. LTD insurers typically offset your benefit by the amount you receive from SSDI, along with other benefits like workers’ compensation or state disability insurance.
While the reduced LTD benefits may seem to make applying for SSDI seem unnecessary, receiving both offers multiple advantages, including the following:
- Potential Increased Income – LTD offsets are not always dollar-for-dollar, meaning you may have your payments reduced by applying for SSDI, but still increase your total monthly income.
- Long-Term Protection – LTD benefits often stop at a set age, usually 65, but SSDI continues for as long as you remain disabled.
- Tax Benefits – LTD benefits from an employer-paid plan are often taxable, while SSDI benefits are generally partially taxable or non-taxable.
- Retroactive Payments – SSDI often provides retroactive benefits dating back to your application, while LTD insurers typically pay from the date of claim approval onward.
When Do SSDI and LTD Benefits End?
Perhaps the biggest difference between Social Security and disability is their individual timelines. Here’s a breakdown:
SSDI Benefits
SSDI benefits can end upon reaching full retirement age, at which point they convert to retirement benefits, which may impact your monthly income. Benefits also end if Social Security determines you can return to substantial work or your medical condition improves to where it no longer meets Social Security’s definition of disability.
LTD Benefits
LTD benefits end according to your policy terms. That can mean they end when you return to work, you can perform another suitable occupation, you reach age 65, or the maximum age detailed in your policy, or your insurer determines you no longer meet the policy’s definition of disability.
Claims and Appeals Processes for SSDI and LTD
Both the SSDI and LTD programs have unique procedures, and missing deadlines or documentation can jeopardize your benefits. Here’s how both processes work:
SSDI Claims
- Submit your application to the Social Security Administration
- Receive an initial determination
- If denied, file a request for reconsideration
- Appeal to an administrative law judge if needed
- Request review by the Appeals Council, and finally, file in federal court
LTD Claims
- Submit your claim to your insurance provider with medical evidence
- Insurer reviews and makes an initial decision
- If denied, file an internal appeal according to policy terms
- Consider external review or litigation if the insurer continues to deny benefits
How Our Disability Benefits Lawyer Can Help You
An experienced disability benefits lawyer can make a tremendous difference when seeking SSDI or LTD benefits. Your attorney can help by doing the following:
- Helping you understand SSDI vs Long Term Disability
- Gathering key evidence to strengthen your claim
- Communicating with insurers and the Social Security Administration on your behalf
- Filing appeals and advocating for full benefits when your claim is denied
Contact Our SSDI Lawyers Today
A disability can turn your life upside down, but you do not have to navigate its consequences alone. The team at Ryan Bisher Ryan Simons helps clients secure the SSDI and LTD benefits they deserve. Whether you’re filing an initial claim or appealing a denial, we can lead you through the entire process and protect your financial future.
Contact us today for your free consultation with our Oklahoma disability claims attorneys, and let’s discuss your brighter tomorrow.
