How does Social Security Disability affect my LTD benefits?

by Brandon Operana on Sep. 17, 2020

Government Social Security Employment  Employee Rights Employment  Pension & Benefits 

Summary: Social Security benefits typically offset LTD benefits, causing a change in your benefit amount.

Your insurance company usually requires you to apply for Social Security Disability (SSD) benefits.  This is because in most LTD policies, there is an offset that occurs when you receive SSD benefits. Usually, your LTD benefit amount is reduced by the amount of your SSD benefit amount. Your LTD benefit amount may also be reduced by other Social Security Benefits you and your family receive, such as dependent and spousal benefits.  You may also be required to pay back all or a portion of your retroactive SSD benefits (back pay/past-due benefits).  

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