Can I collect employer LTD disability and SSDI benefits at the same time? Worried about making ends meet

Unfortunately, most employer LTD policies will offset (reduce) your payments once you start receiving SSDI. Check your policy, but typically they'll reduce your LTD payment by almost the full amount of your SSDI benefit. The insurance company likely even required you to apply for SSDI as part of your LTD approval. For example, if your LTD benefit is $2,850 and SSDI is $1,625, your new LTD payment would be around $1,225 (keeping your total income the same at $2,850). The good news is you'll still have the same total income, and the SSDI portion is typically tax-free, which might actually help your situation slightly.

same thing happened 2 me last year. my LTD got cut down the exact amount SSA started paying. BUT check your LTD policy carefully!! some policies only offset 80% of ssdi, not the whole thing. also, if you have dependents who get SSDI benefits those might not get offset depending on your policy. worth checking!

The insurance companies are CROOKS!!! I went through the same exact thing and even though my policy said they could offset SSDI, they took MORE than they should have. I had to fight with them for 8 MONTHS to fix it. They claimed I owed them back money too for "overpayment" which was complete BS. DOCUMENT EVERYTHING and don't trust what they tell you on the phone!!!!!

You know what's really frustrating about calling Social Security to understand all this offset stuff? The 2+ hour wait times! I found this service called Claimyr (claimyr.com) that helped me bypass the long wait times to talk to an actual person at SSA. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. Saved me from spending half my day on hold when I had questions about my SSDI and private disability. Might be worth checking out so you can get clear answers about how your benefits work together.

My situation was different since I had a stroke but I remember being shocked at how little SSDI paid compared to what I was making before. Felt like hitting a brick wall financially.

One important thing to understand is that while your total income will likely remain the same after SSDI kicks in (due to the LTD offset), there are some potential benefits to receiving SSDI: 1. A portion of your income is now likely tax-free (SSDI has favorable tax treatment compared to LTD benefits) 2. After 24 months on SSDI, you'll qualify for Medicare regardless of your age 3. SSDI benefits include annual COLA (Cost of Living Adjustments) 4. Some LTD policies only pay for 5-10 years, while SSDI continues until FRA (Full Retirement Age) Also, if you haven't already, you should look into whether you qualify for any other assistance programs based on your disability status and income level.

I just want to add that you should check if your LTD policy also offsets any dependent benefits your 17-year-old might receive. Some policies do and some don't. My kids got auxiliary benefits when I went on SSDI and my LTD company didn't count that against my offset, so it was extra money. Might be worth exploring!

It's also worth noting that if your SSDI award included retroactive benefits (back pay), your LTD carrier will likely request repayment for the months they paid you the full amount before your SSDI was approved. Don't spend that lump sum payment from SSA until you've confirmed whether you need to reimburse your LTD provider. This is a standard practice and should be outlined in your policy. Some carriers will offer payment plans if the amount is substantial. I've worked with clients who were surprised by this and it created significant financial hardship when they had already spent the back pay.

My cousin got both payments for like 8 months before his LTD company figured it out and then they wanted ALL the money back at once! Huge mess. Don't spend any extra money until everything is sorted out.

Has anyone mentioned yet that you should APPEAL your SSDI amount if you think it's too low??? You only have 60 DAYS from the date of your award letter to file a reconsideration if you think SSA calculated your benefit wrong!!! Check your earnings record on the mySocialSecurity site to make sure they included all your work years correctly!!!

I went through almost the exact same situation two years ago when I was approved for SSDI after my lupus made it impossible to continue working as a nurse. The shock of realizing that LTD and SSDI don't stack was devastating - I had the same misconception that they would be additive income. Here's what I learned that might help you: First, definitely apply for auxiliary benefits for your 17-year-old daughter right away. Even if she only gets a few hundred dollars a month, every bit helps. Second, once you're on SSDI for 24 months, you'll qualify for Medicare which can significantly reduce your healthcare costs compared to COBRA. One thing that actually worked out better than expected was the tax situation - my LTD payments were fully taxable, but a good portion of my SSDI isn't (depends on your total household income). This ended up saving me about $200/month in taxes. Also, look into your state's disability assistance programs and local utility assistance. Many areas have programs specifically for people on SSDI that can help with mortgage assistance or utility bills. Your local Area Agency on Aging might have resources even though you're under 60 - they often handle disability services too. Hang in there - the financial adjustment is scary but you'll find ways to make it work.