What Is The Relationship Between Social Security Disability and Long-Term Disability?

What Is The Relationship Between Social Security Disability and Long-Term Disability?

Sometimes, you may get sick or hurt in a disabling way. In fact, according to the Social Security Administration's website, "Studies show that a 20-year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age." Unfortunate events happen to many different people all the time, and they can keep you from working and earning money for you and your family. What do you do then?

There are a few different types of insurance and programs that could cover this. The Social Security Administration offers benefits to disabled people called Social Security Disability (SSD), but there are qualifications for the program. You may not be qualified for SSD benefits, so you may choose to purchase long-term Disability insurance (LTD) on your own or through your employer, if they offer it to you.

Just like with health insurance, homeowners insurance, and auto insurance, long-term disability is an insurance policy that you may opt to purchase of your own accord. Your policy may be different from others, depending on the state you live in, but LTD insurance will usually pay for 50% -70% of your salary, and it may pay anywhere from 5 to 10 years or until you reach the age of 65 . Would not it be nice to receive both long-term disability and Social Security Disability benefits at the same time?

It would, but sadly, it's usually not the case. Your LTD may actually change and possibly decrease based on whether or not you were approved for SSD benefits. For…



Source by Wade Coye