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Home :: FAQ :: Long Term Disability Cases

If I am receiving Long Term Disability Insurance Benefits from an insurer, how will Social Security disability benefits affect my Long Term Disability benefits?

If you are approved for Social Security disability benefits, your disability payments from your Long Term Disability Insurer probably will be reduced by the amount you and any dependents receive under Social Security.  In other words, you will continue to receive the same total amount of monthly benefits, but the money will come from two sources.

Typically you will receive a large retroactive payment from Social Security shortly after your claim is approved.  Your Long Term Disability insurer considers this money essentially to be money that the Long Term Disability insurer advanced to you while you were awaiting Social Security’s decision.  Usually you must pay it back to the Long Term Disability insurer immediately after you receive it from the Social Security Administration.

While your disability benefits from the Long Term Disability carrier probably will be reduced once you are awarded SSDI, the Social Security Cost of Living increases will be yours to keep.  Over time, the value of those increases can be significant.  For example, an individual earning $50,000.00 a year who became disabled at age 40 and remained disabled until retirement would receive over $238,000 in additional benefits.  Ultimately, Social Security cost of living adjustment adds money to your pocket each year.