Will someone PLEASE tell me how Long Term Disability will affect my Social Security Benefits??
Posted in Social Security
I can’t tell you how many times I have found myself in the position of having to explain how a person’s Long Term Disability program will affect their Social Security disability benefits. I have seen more people PISSED off, angry, and upset because they didn’t have a full appreciation of how that program would affect their benefits.
With that being said, let me give you a few tips that may help you out along the way:
1) If you don’t know BEFORE you sign up, Call your carrier and ASK!!
If you’re thinking about applying for Long Term Disability, check with your carrier and find out how your LTD program will be affected by Social Security. It’s important to have this information available to you in the very beginning.
2) If you have signed up and you don’t know, Call your carrier and ASK!!
So many times, people will start the process of applying for Social Security and think that their LTD benefits and SSD benefits will go ‘hand and hand’. Don’t let yourself get caught off guard. Ask as soon as possible.
3) It sucks but you may have to reimburse them.
I hate to be the bearer of bad news but some LTD policies require you to reimburse them if you receive monies during the same time they are paying you. You might want to know that ahead of time.
4) It stinks even more but your LTD benefits may be reduced after you get disability benefits.
Be careful. Sometimes, you are sitting over there doing the NEW math and thinking that you will get money from LTD and your SSD. This point may be true but it is possible that they may reduce your benefits to account for the SSD money you are getting so you need to be ready.
5) It stinks the MOST but your LTD benefits may STOP after you get disability benefits.
OOOOOOO, this is point that makes people HOTTER than fish grease. Let’s say you’re getting $1000 a month in LTD benefits and then a year from now, you start getting $1200 in SSD. So in your mind, you’re thinking “BAM! $2200 a month? We ROLLING!”. And then what happens? you are only getting $1200! Say what? Who bumped their head? Well, it might have been you if you haven’t checked your policy and your policy has a provision that STOPS your LTD once you get your SSD.
6) They want to know about the status so get READY or you may have problems.
I know this will get on your nerves but they are going to want to know REGULARLY about your SSD process. For some policies, if you don’t have an active claim, you don’t get any money.
7) Don’t wait until AFTER you get your benefits to contact your LTD carrier to find out how it will be affected.
Most people get the SHOCK of their life because once they have gone through the 2 years or so of waiting for your SSD benefits and you think it’s cool and then BOOOOO YAAA! you get your SSD benefits. your back pay goes to your LTD carrier and you stop getting LTD checks. NOW, you are mad and don’t want to do. Unfortunately, you may not be able to do anything.
Now, don’t get me wrong. LTD programs are AWESOME! THey provide some well needed money when you’re sitting over there waiting on the SSA process to unfold. Just recognize this point. The LTD program may not be designed (depending on your policy) to keep you covered forever so you need to EDUCATE yourself about what it covers so you don’t get surprised.
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