Can You Collect Private Disability And Social Security At The Same Time?
However, your SSDI benefits may be reduced if you also receive private disability insurance. This is because SSDI has an offset policy, where your SSDI benefits are reduced dollar for dollar by the amount you receive from private disability insurance.
The total amount you receive from both sources typically won’t exceed your average current earnings before you became disabled.
Related Reading: Does Life Insurance Affect Social Security Disability Benefits?
Key Points About Collecting Both Benefits
- Offset Policy: SSDI benefits are reduced by the amount received from private disability insurance.
- Total Benefit Cap: Combined benefits usually do not exceed pre-disability earnings.
- Reporting Requirements: You must report private disability insurance benefits to the Social Security Administration.
- Private Policy Terms: The terms of your private disability insurance may also affect how benefits are coordinated with SSDI.
- If your average earnings were $2,000 per month and you receive $1,200 from SSDI and $1,000 from private disability insurance, your SSDI may be reduced to $800 to keep the total at $2,000.
Related Reading: Will Life Insurance Payout Affect SSDI
Collecting both private disability insurance and SSDI is possible, but expect adjustments in SSDI payments. Understanding the offset policy and how it applies to your situation is crucial. Contact us today for a free quote.
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