Get Answers to Your Disability Insurance Questions and Get Your Free Quote Today!

Were you recently diagnosed with a medical condition or mental health impairment that affects your ability to work? You may be eligible for monthly disability benefits to help provide financial stability while you recover.

Disability programs offered by the federal government and private insurers are an important safety net for anyone who suffers from a medical condition or mental health impairment that prevents them from working.


Key Article Takeaways

In order to be eligible for both federal disability benefits and private insurance policies, you must meet specific criteria. For example, Social Security Disability Insurance (SSDI) has requirements regarding work history and medical conditions; private insurance policies have their own eligibility rules as well.

However, as long as you meet the requirements for both types of benefits, you may be able to collect them simultaneously.


What is Social Security Disability Insurance?

The Social Security Administration (SSA) provides an insurance program known as SSDI, or Social Security Disability Insurance. To be eligible for these benefits,, individuals must satisfy two requirements:

they have to be regarded as disabled according to the definition of this term by SSA,and earned a requisite amount of work credits by being employed during some period in their lives. This is necessary for them to claim this support when they cannot work for more than 12 consecutive months due to a disability.

If approved, your Social Security Disability Insurance (SSDI) payment is calculated from your average earnings over time before you acquired a disability. It does not reflect how severe your condition is. When it has been established that you are eligible for such benefits, you may be granted a lump sum to cover all of your back benefits due since when your disability originally started.


How your benefits are calculated in 2023:

 To calculate your  Social Security Disability Insurance payments, Social Security takes into consideration the average earnings of applicants over the last 35 years. During this period, they will take note of any years in which you had the highest income to calculate what is known as your Average Indexed Monthly Earnings (AIME). The agency then applies certain percentages calculated from your AIME (referred to as bend points) to determine your primary insurance amount.

Beginning January 1, 2023, an applicant’s bend points are as follows:

90% of the first $1,115 of your AIMEplus 32% of your AIME from $1,115 to $6,721plus 15% of your AIME over $6,721.

Click here to find additional information on how your benefits are calculated.


How does Long Term Disability Insurance Work?

A Long Term Disability Insurance policy provides the policyholder to have a portion of their salary reimburse if they become disabled due to an injury or illness. This benefit typically ranges from 50-60% of their average earnings prior to the disability depending on the disability insurance coverage. 

Generally, most benefits will be paid until the policyholder can return to work or for a specified period as indicated in the contract.

An elimination period (waiting period) must be satisfied before any benefits are payable. The waiting period begins when a doctor diagnoses the disability up until the elimination period is exhausted. The elimination period you select should be based on how long you can pay living expenses while not receiving an income.

Since the elimination period will impact your cost of insurance, you should be certain about the waiting period you select.


How Much does Long Term Disability Insurance Cost?

For those unable to work due to disability, purchasing a policy of disability insurance can be incredibly beneficial. This type of coverage typically pays out a percentage of your salary, usually in the range of 50-60%. Benefits are received until such a time that you are able to resume working or for the length of years specified in the policy.

When it comes to long-term disability policies, the benefits typically extend until you reach the age of 65. On average, this type of coverage costs over $2,000 annually; however, that amount may be adjusted depending on a variety of factors such as salary. Generally speaking, you can expect to pay between 1 and 3 percent of your income for a premium.

Insurance companies use the following criteria when determining your cost of insurance:

Your average incomeYour genderYour health statusYour ageNicotine usageYour occupation


Can I Collect both Long Term Disability Insurance Benefits and SSDI?

Social Security Disability (SSD) and Long Term Disability (LTD)  benefits can be received simultaneously, but SSD offsets and reduces LTD benefits. Dependent benefits, COLA increases, or earnings credits may complicate the offset calculations.

Due to the fact that the LTD process is much faster than the SSD process, offsets to LTD benefits are calculated both retroactively and in the future. Most LTD claimants receive LTD decisions within a few short months, whereas SSD claimants typically have to wait over a year.

After receiving LTD benefits for many months, you may receive a lump sum award of retroactive SSD benefits. A monthly offset will be applied going forward too if your LTD insurer invokes the policy’s “offset provision” that requires you to “reimburse” the insurer for SSD benefits paid during the same eligibility period.


In Conclusion

If you are concerned about collecting SSDI from the government and long term disability insurance benefits at the same, don’t be. And, if you have more questions about Long Term Disability Insurance, reach out to the experts at LifeInsure.com at 866-868-0099 or contact us through our website at your convenience.


Frequently Asked Questions

Does SSDI insurance cost anything?

The SSDI program is administrated by the SSA. The taxes taken from your pay check helps to support this program.


How long can you collect long term disability insurance

How long your disability insurance benefits last depends on the details of your policy. Unlike short-term disability coverage, long-term disability policies are designed to replace your income from two years all the way to retirement, or until you can return to work.


How much coverage should you get for long term disability insurance?

The quick answer is: as much as you can afford. Generally most applicants purchase enough coverage to replace a large portion of their income if they become disabled.


Can I buy long term disability insurance on my own?

Absolutely. Many employers offer short-term disability insurance but very few offer long term coverage which critical to protecting your income,



Get Answers to Your Disability Insurance Questions and Get Your Free Quote Today!

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