If you have become unable to continue working due to illness or injury, you likely heard about filing for disability. It is important to know that there are different types of disability benefits. The two most common are social security disability benefits and long-term disability benefits. And, in most cases, you will need to (and should) file for both.
SSD versus LTD
Social Security disability benefits are administered by the federal government. If your medical condition will keep you from working for at least 12 months or may result in your death, then you will likely be eligible to receive SSD. The two types of SSD benefits include Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). You must prove disability and have earned a certain number of work credits and contributed to the Social Security system to be eligible for SSDI. SSI, on the other hand, provides financial support to disabled persons who low-income regardless of work history. The amount of disability benefits you receive, known as your entitlement, is determined by the Social Security Administration.
Long-term disability (LTD) benefits are paid by private disability insurance companies. Most people have LTD coverage through their employer, although some individuals purchase a private policy through an insurance agent. These LTD policies pay a percentage of a person’s salary in the event they are unable to work due to illness or injury. LTD policies can vary depending on their terms. Sometimes the coverage is limited and there are specific exclusions and limitations on disability claims. LTD policies often pay a higher benefit than SSDI benefits. Most of the time, any SSDI benefits you receive will reduce the total amount of LTD benefits.
If you have questions about your LTD claim, contact us for a free consultation with one of our disability attorneys.