Many policyholders aren’t always aware of what they get from their insurance. Oftentimes, they don’t know what the clauses under Long-term disability insurance (LTD) are. They are also not aware how their long-term disability claim can affect their Social Security Disability insurance (SSDI).
If you are one of the unaware policyholders, it’s best that you ask a long term disability lawyer to help you understand the terms of your insurance policy. It’s also important that you distinguish how your LTD policy can affect your SSDI and vice versa.
With this, we are going to discuss some of the things that you need to know about your LTD policy and how it affects your SSDI.
What is the difference is SSDI and LTD Insurance?
An LTD insurance is a type of insurance policy that protects you and your family in case you are no longer qualified to work physically. This type of insurance is often purchased through your employer as part of your insurance. For some, this insurance is often purchased through an outside insurance company.
Some insurance companies offer both short-term and long-term disability insurance. The long-term insurance policy will cover at least 60%-65% of your working salary. However, not all insurance companies offer the same coverage. It will also depend on the nature of your work and your position in the company.
While an SSDI is a disability program provided by the government. Funds for the SSDI are from the Social security taxes that citizens pay monthly. If you are unable to work due to a specific medical condition, the government will provide your needs financially. However, there are certain criteria that you have to meet before you can receive this claim. Claimers must have serious injuries that will render them permanently disabled to work on any types of occupation.
For you to be eligible for SSDI, you must be able to earn enough work credits. The total amount that you can receive from SSDI is dependent on the work you’ve done during your employment period.
Requirements for you to receive both SSDI and LTD Insurance
For you to benefit from both SSDI and LTD insurance, you need to meet the requirements set by the Social Security Administration (SSA). If your insurance is not approved by the SSA, there is a possibility that you will not get the full benefits of the SSDI.
It is also an advantage if you have an LTD insurance when you are filing for an SSDI. It takes 5-6 months before you can claim your SSDI. Meanwhile, the LTD has a lesser waiting period. Your LTD insurance can support you during this waiting period.
Once you receive the approval of the SSDI, your insurance provider will then pay the difference between your LTD and SSDI. This will become your monthly insurance claim from both LTD and SSDI.
When purchasing an LTD insurance, it should have the approval of SSDI. In that way, it will financially support you and your family while waiting for your claim. If you encounter problems with your LTD insurance claim, ask for a legal professional to help you.