Wednesday, March 28, 2012

How Does Social Security Disability Income Directly Affect Long Term Disability?

Although Social Security Disability Income and Long Term Disability are two different sources of income for beneficiaries who sustained disabling condition, both are greatly affected by each other.

Along with long term disability policies, a deductible source of income provision is also included as a whole package. A social security offset that comes with an individual long term disability is very rare. A source of income which is deductible is also referred to as an offset.

People must be aware of the fact that Social Security Disability Income Benefits are a source of income which is considered as deductible. Actually, SSDI is just a kind of deductible source of income generally found in group long term disability policies.

Social security disability income directly affects long term disability provided by other disability carrier. Once the other disability carrier has been paying the recipient, say for 20 months, and the beneficiary received SSDI benefits which has been active for like 15 months, the other disability carrier will claim that the recipient was overpaid for 15 months.

Therefore, the recipient must pay the retroactive SSDI award to the disability carrier or the one that provides the long term disability. The overpayment will be automatically deducted by the disability carrier from the succeeding monthly benefits of the recipients in the same amount of the monthly SSDI checks.

For instance, if your monthly SSDI is $1,600 and your long term disability from the disability carrier is $3,000 per month, for the next 15 months, you will only receive $1,600.

Nobody can have the best of both worlds. Therefore, people must be wise enough to realize that the Social security disability income they are receiving must not be spent carelessly since the other disability carrier will definitely be asking the recipient to pay back the overpayment in the same amount.

Don’t ever think of taking advantage over the false Social security disability income overpayment since the government would never tolerate such mistakes even if it was their fault.