Social Security Disability vs. Long-Term Disability: A Guide

Can You Receive Both SSDI & LTD Benefits? Here’s What You Need to Know.

When you’re not able to work due to an injury or illness, the first question on your mind is likely where to get help. If you’ve heard about long-term disability insurance and federal Social Security Disability, you may wonder which you should receive.

Understanding these two programs can feel complex. But knowing how they work together can give you peace of mind. In fact, you may qualify for both, and you don’t need to worry about “doubling up” on the two types of benefits.

Social Security Disability Insurance (SSDI) and long-term disability (LTD) insurance are often intertwined:

• If you’ve recently had to stop working, long-term disability insurance can provide income while you wait for SSDI approval.
• If you receive benefits through LTD, your provider may require you to apply for SSDI to stay eligible. 

Our expert Iowa Social Security Disability attorneys work to make this process as easy as possible. While we don’t practice long-term disability law, we do frequently help clients understand how these two programs interact. Here’s a short guide on these two types of benefits and when you may qualify.

Understanding Social Security Disability vs. Long-Term Disability

Social Security Disability Insurance and long-term disability insurance both help people who are unable to work. While their goals are similar, the programs have many differences:

• Social Security Disability (SSDI) is a federal program for those who are no longer able to work due to injury or illness. Workers qualify based on income guidelines and their past work history. Their condition must meet the Social Security Administration’s definition of “disability” to qualify. 
• Long-Term Disability (LTD) is private insurance that workers often receive through their employer. If you have this insurance, it can cover you in the event you become unable to work due to injury or illness. To qualify, you must meet your insurer’s disability requirements and not be able to work in your current role.

A major difference between these two benefits is that SSDI requires you to be out of work (or expect to be out of work) for at least a full year. There is also often a five-month waiting period for you to begin receiving those benefits. 

Long-term disability benefits are available much sooner. If you know you will not be out of work for more than a year, you can rely on your LTD insurance. However, if your disability lasts longer, your LTD benefits can serve as a stopgap income while you are waiting for SSDI approval. 

Can I Get Long-Term Disability & Social Security Disability at the Same Time?

LTD and SSDI are different programs, but they serve similar purposes. Is it possible to qualify for both? 

The answer is yes. It is possible and common to “double up” on long-term disability and SSDI if you can’t work for a long period of time. In fact, many LTD policies have a clause that requires you to apply for SSDI benefits. 

However, it’s often not a double paycheck. Long-term disability typically pays more than Social Security Disability benefits. If you are receiving LTD and are later approved for SSDI, then you may receive less income from your LTD benefits moving forward. 

For example, if your LTD benefit is $3,000 and you begin receiving an SSDI benefit of $2,000, your insurance company may reduce your LTD benefit to $1,000. 

Are you curious whether you qualify for SSDI? Learn more about the Social Security Disability application process.

If I Win My SSDI Case, Will I Have to Pay Back My LTD Benefits?

It can take several months to receive approval for Social Security Disability, especially if you need to file an appeal. Long-term disability can be a helpful bridge to give you income while you wait for approval.

If you win your Social Security Disability case, you will receive back pay for the months that you were eligible while your case was pending. When this happens, you may need to repay some or all of the LTD benefits you previously received during that period. 

However, you don’t need to worry about losing money. The amount you need to pay will often be covered by the payout you receive when you win your SSDI case. 

What this does mean is that you shouldn’t immediately spend your SSDI payout until you know for sure that you will not owe anything to your LTD provider. 

How Long-Term Disability Could Help Your SSDI Case

Qualifying for long-term disability often requires documentation from your treating doctor. If you receive approval for LTD while you are appealing a Social Security Disability denial, it can help your case.

That’s because it is proof that you are not working, which is the first test you must meet to qualify. Existing LTD records, like a questionnaire filled out by a doctor, can also serve as evidence of your disability. 

Another important note: It’s vital not to wait until your LTD benefits are expiring to file for Social Security Disability. Since approval could take months, this could leave you with a gap in benefits where you have no income. 

When to Call an SSDI Attorney for Your Case

If you’ve recently become unable to work, we recommend that you contact a Social Security Disability attorney as soon as possible. 

Some insurers may offer services to help you file for SSDI. However, it is important to work with someone focused on your long-term interests. The best representation is an independent attorney like Schott Mauss & Associates. We can work with you from before you file out your application through your final appeal. We are also able to help you keep your LTD carrier updated on the status of your Social Security Disablility claim if needed. 

Contact our team today for a free consultation.