Does receipt of private disability insurance reduce my Social Security disability benefits?
Yes, often receipt of your private disability insurance payments will be offset by your SSDI payments. During the pendency of your claim, you may be on a long-term or short-term disability insurance. You will be paid by your LTD or STD carriers, but once you get your lump sum payment from Social Security, those carriers are going to be looking to you to re-compensate them for the money they’ve paid because deep down buried in your private disability insurance contract is the clause that says you have to do that. So, don’t go throw in the money away or spending it before you contact your LTD carrier or you may end up in a federal lawsuit that with them trying to collect back from you.