Wednesday, June 22, 2022

Can You Collect Social Security Disability And Private Disability Insurance

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How Common Is It For Beneficiaries To Return To Work

Long Term Disability Insurance and Social Security Disability

Both Disability Insurance and Supplemental Security provide incentives for beneficiaries to work. Disability Insurance beneficiaries are encouraged to work up to their full capacity and can earn an unlimited amount for up to 12 months without losing any benefits. Beneficiaries who work for more than 12 months and have earnings above the substantial gainful activity level cease to receive a monthly benefit. If at any point in the next five years their condition worsens and they are not able to continue working above the substantial gainful activity level, however, they are eligible for expedited reinstatement of their benefits. This means they do not need to repeat the entire, and typically lengthy, disability-determination process that they initially went through to qualify for benefits.

Supplemental Security beneficiaries who are able to work are encouraged to do so as well. Their benefits are reduced based on their earningsafter the first $85 of earnings each month, which is not counted against the benefitbut by only $1 for every $2 of earnings. Beneficiaries who are able to do some work will therefore always be better off with both earnings and a reduced benefit than just the benefit alone.

Health Resources For People With Disabilities

Federal, state, and local government agencies and programs can help with your health needs if you have a disability.;

Visit USA.govs Government Benefits page to learn more about government programs and services that can help you and your family.

Social Security Disability Benefits

The Social Security Administration oversees three wage benefit options. Each program serves distinct populations and has unique eligibility requirements.

The advantage is that most US citizens are eligible to participate if they pay FICA taxes. However, only one of the three alternatives could possibly help during a temporary work absence.

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How Dependents Benefits And Attorneys’ Fees Affect The Offset

If Social Security is paying dependents benefits to your spouse or children based on your disability , many LTD policies allow the insurance carrier to offset these amounts as well.

Social Security’s yearly cost-of-living adjustment is rarely factored into the offset.

Attorneys’ fees are generally not included when figuring the offset, allowing many Social Security disability claimants to obtain essentially free legal representation. While your insurer may offer to provide you with an attorney or a non-lawyer representative to handle your disability case, it’s usually a better idea to hire an experienced, independent disability attorney, especially if you can do so free of charge.

Every policy is unique, so read your policy’s summary plan description or contact your insurer to learn how dependents/auxiliary benefits and attorneys’ fees can affect the Social Security offset.

How An Experienced Long

How Can I Get Disability Without Insurance?

When we take on your long-term disability claim, our law firm will always put in the time and energy required to truly understand your case and your individual needs. We will listen to your story, review your file, explain your legal rights and legal options to you, and fight to get you the full and fair long-term disability benefits that you rightfully deserve.

We have a no-fee guarantee. Our legal team will help you recover your long-term disability benefits or we will not get paid for our services. There are never any upfront fees or out-of-pocket costs for you and your family. We only get paid if you get your benefits. Case evaluations are always free of charge. No matter the specific nature of your claim, Nancy Cavey can help you better understand your rights and your options with a FREE consultation.

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How Can The Social Security Disability Programs Be Improved To Increase Economic Security And Work Opportunities For Beneficiaries

Disability Insurance and Supplemental Security increase economic security for millions of disabled workers. For beneficiaries whose conditions improve, the programs also provide important incentives and supports for returning to work. Still, the programs could be further strengthened to increase disabled workers economic security and provide a more seamless transition for those who are able to return to work.

Modernize Supplemental Security

The value of Supplemental Security benefits has eroded considerably since the programs inception in 1972, as the programs income exclusions and asset limits have not kept pace with inflation and living standards. The current maximum benefit is equivalent to just three-quarters of the also-outdated federal poverty line for a single person. The general income exclusion and earned income exclusion have never been increased. To address this erosion, H.R. 1601, the Supplemental Security Restoration Act, sponsored by Rep. Raul Grijalva and introduced in Congress in April 2013, would increase the monthly maximum benefit to $937, which is 100 percent of the current federal poverty line, and would increase the general income disregard to $110 per month and the earned income disregard to $357 a month. Increasing the income exclusions and indexing them to inflation going forward would restore the monthly benefit amount to its intended value and significantly increase beneficiaries economic security.

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Additional Things To Consider

Lastly, its important to remember that Social Security has a wide-ranging definition of whats considered income. While many private benefit programs are not considered part of that, there are other things like outside assets, investments, and more that could affect your ability to qualify for federal assistance.;

If youre considering applying for SSI or SSDI, its potentially worth your time to contact a qualified Social Security claims attorney to ensure that your application has the best possible chance of approval. Schott Law is a trusted source for eastern Washington and Idaho applicants working through these issues. Call 328-5789 to learn more and schedule a free consultation.;

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Advantages Of Private Disability Insurance Over Social Security Disability Insurance

Though the terms of insurance policies can vary significantly from plan to plan, private disability insurance can offer important advantages over Social Security disability insurance.

A significant benefit over Social Security disability insurance is private disability plans have more expansive definitions of disability. While Social Security disability insurance requires you to show total disability, many private plans will pay benefits without the requirement to prove you cannot;work at all.

Another advantage to private insurance is it may replace a greater part of an individuals lost income than Social Security disability insurance. Social Security disability benefits are based on your average lifetime earnings and cannot exceed $2,663 a month in 2015.

Individuals with private insurance may be able to receive more than this amount as many policies generally cover around 70 percent of a workers salary when he or she becomes disabled.

How Have The Number And Share Of People Receiving Disability Benefits Changed Over Time And What Accounts For These Changes

Difference between Private Disability Insurance and Social Security Disability Benefits

There has been little change over the past two decades in the share of nonelderly adults receiving Supplemental Security due to a disability. In 2011, 2.4 percent of nonelderly adults received Supplemental Security for a disability, compared to 2.1 percent in 1996. This comparison does not, however, take into account demographic and economic changes, particularly the aging of the population and the increase in poverty, which both have increased the number of people who are potentially eligible for Supplemental Security.

Controlling just for income, participation in Supplemental Security by working-age adults who are potentially eligible because of low income has actually declined over the past decade and a half. In 2011 there were 17.6 nonelderly adults receiving Supplemental Security for every 100 nonelderly adults with incomes below 100 percent of the poverty line, compared to 18.5 nonelderly adults in 1996. In other words, the number of nonelderly adults receiving Supplemental Security grew at a slower rate than the number of nonelderly adults with very low incomes.

The share of nonelderly adults receiving Disability Insurance has increased over time. This is largely due to demographic factors, including:

A number of factors account for this one-percentage-point increase in the disability-prevalence rate after accounting for the changes in the age and gender distribution of the workforce, including the following:

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Social Security Disability Insurance As A Long

SSDI is a disability program that is government funded. You pay Social Security taxes, which pays into this program. If you become unable to work because of a medical condition and you meet the requirements set by the SSA, you can start receiving monthly disability benefits after the six-month waiting period, which is based on the date you are determined to have become disabled.

To be eligible to receive SSDI, you must have worked enough to earn sufficient work credits. The amount of your monthly benefits is dependent upon the work credits you earned and the amount of your earnings from employment.

In order for you to be approved for monthly SSDI benefits, you have to meet the strict criteria set forth by the SSA to be disabled per the government agencys guidelines. This means you must be able to prove that your condition prevents you from being able to perform any kind of work in the national economys current state.

This can be much more complicated that proving you are disabled to receive long-term disability insurance benefits. For SSDI benefits, you must be fully disabled, which means you cannot perform any kind of work duties at all because of your medical condition. There are specific criteria set for different disabling conditions in the Blue Book, which is the SSA medical guide that is used for disability determination.

Reasons Why Ltd Permanent Disability Can Be Canceled

By Aaron Hotfelder, J.D., University of Missouri School of Law

If you’re receiving long-term disability benefits, keep in mind that your insurance company can terminate your monthly payments for any number of reasons. It’s important to be familiar with the most common reasons that LTD benefits are cut off so that you can try to continue to receive benefits for as long as you’re disabled. The most common reason to have your benefits terminated is that you are no longer disabled, or the insurance company finds this to be true.

Every LTD plan is different, so it’s likely that not everything that follows will apply in your case. For information about your particular plan, check your policy’s summary plan description or, even better, the policy itself.

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How Insurance Companies Handle Overpayments

Insurance companies typically deal with an overpayment in one of three ways. Most companies require immediate reimbursement of the full overpayment amount as soon as you receive your backpay. Others will agree to reduce your monthly LTD payment until the debt is satisfied. Finally, if you don’t pay the overpayment out of your Social Security backpay, insurers occasionally stop paying LTD payments entirely until the overpayment has been repaid, but this option is usually a last resort.

Expect your LTD insurance company to require you to sign a Social Security Reimbursement Agreement, stating that you’ll repay any retroactive Social Security benefits to the company. You may also be sent a Payment Option Form offering you the choice to receive a reduced amount of LTD benefits while your Social Security case is pending, so that you don’t have an overpayment to pay back with your Social Security backpay. Predictably, almost no one accepts this rather unappealing offer.

Why Is There A Shortfall In The Disability Insurance Trust Fund And What Can Be Done About It

Can You Collect Social Security Retirement and Disability ...

As described above, Disability Insurance is funded by a dedicated share of payroll tax contributions0.9 percent of taxable wages paid by workers and the same amount by employers. Since the mid-1990s the Social Security Administration has consistently projected that the Disability Insurance trust fund would have sufficient reserves to cover all scheduled benefits until 2016, but that after that date, additional funds would be needed to avoid a shortfall in the necessary funds to continue paying full benefits. If no action is taken to address the shortfall, the Disability Insurance trust fund will only be able to pay 80 percent of scheduled benefit levels after 2016.

Congress has addressed similar shortfallsin both the Disability Insurance trust fund and the Old Age and Survivors Insurance trust fund, which pays retirement benefitsnearly a dozen times in the past by temporarily reallocating the share of overall payroll tax revenues that is dedicated to each trust fund. In some cases, they have reallocated funds from the Disability Insurance trust fund to the Old Age and Survivors Insurance trust fund; in others, they have reallocated funds from the Old Age and Survivors Insurance trust fund to the Disability Insurance trust fund.

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Check Your Group Policy What Do Offset Clauses Look Like

Group disability policies have language about offsets, known as an offset clauseor a right of offset, to ensure that claimants only receive a percentage of their pre-disability earnings .

The following is an example of a typical group disability-insurance policys offset clause:

The obligation of a party to indemnify any claim under this Article X shall be reduced by the full amount of any collectible insurance proceeds actually received by the indemnified party with respect to such claim or the underlying facts under any applicable policy or policies.

Put simply, this clause reserves the insurers right to reduce its payments to you by the amount of payment you receive from other, third-party sources.

Sometimes, however, offset clauses say more. In addition to reducing future payments that insurers are required to pay you, insurers can include offset language that requires you to repay them for third-party payments that you have already received.

The following example of an offset clause contains repayment language:

If the amount of any indemnifiable Losses, at any time following the payment of an indemnification obligation, is offset or reduced by the payment of any insurance proceeds, the amount of such insurance proceeds, less any costs, expenses, premiums actually paid or taxes incurred in connection therewith shall be promptly repaid to the Indemnifying Party.

*Source of example offset clauses:

Can I Receive Ssdi And Disability Benefits From A Private Insurance Company

If you watch television, you have probably seen the advertisements involving the duck that quacks for an insurance company that provides disability insurance. That has been a very effective advertising campaign as many people and companies have signed up for the insurance. Sometimes, we here at Ascend Disability Lawyers, LLC receive questions regarding whether a disabled person can receive disability benefits from both the Social Security Disability Insurance program and from a private disability insurer. The quick answer is yes, but there will be a set-off. Here is a primer on some legal issues with respect to private disability insurance and SSDI.

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What Is Social Security Disability Insurance

Social Security uses a strict definition of disability which excludes both short-term disabilities and partial disabilities.

Social Security pays only for total disability. No benefits are payable for partial disability or for short-term disability.

Disability under Social Security is based on your inability to work.

  • You are considered to have a disability under Social Security requirements if:
  • You cannot do the work you did before.
  • You cannot adjust to other work because of your medical condition.
  • Your disability has lasted, or is expected to last, for at least one year, or to result in death.

The program rules assume working families have access to other resources to provide support during periods of short term disabilities including:

  • Workers compensation
  • Savings
  • Investments

The Social Security Administration initially denies two-thirds of all disability claims primarily because of this strict definition of disability.

Statistics show 60 million people, or more than one in every six American residents, collected Social Security disability insurance benefits in June 2015. While 75 percent of them received benefits as retirees or elderly widows, 18 percent received social security disability insurance benefits, and three percent received benefits as young survivors of deceased workers.

Do My Long Term Disability Payments Affect My Social Security Payments

How will my retirement pay affect my SSDI benefits?

The short answer: Yes.

Its called an offset. Payments from a long-term disability policy can be reduced by the amount you receive from Social Security. This is true whether you receive SSI or SSDI. The Herren Law Firm understands the process and can help you manage your claim and get you the benefits you deserve.

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Other Social Security Benefits

You are not permitted to collect more than one Social Security benefit at a time. If you are eligible for more than one monthly benefitdisability and early retirement, for example, or disability based on your own work record and also as the disabled spouse of a retired workeryou may receive the higher of the two benefit amounts, but not both.

For the purposes of this rule, though, Supplemental Security Income a program jointly run by federal and state governments to guarantee a minimum income to elderly, blind, and disabled peopleis not considered a Social Security benefit. You may collect SSI in addition to a Social Security benefit.

The Facts On Social Security Disability Insurance And Supplemental Security Income For Workers With Disabilities

Endnotes and citations are available in the PDF and Scribd versions.

Nearly one out of every six working-age Americans29.5 million peoplehas a disability, making them much more likely to experience economic hardship than people without disabilities. Many people with disabilities are able to work, although they face greater challenges finding work than people without disabilities. But many individuals with severe and long-lasting disabilities have no or only limited capacity to work and are particularly vulnerable to economic hardship.

For roughly 12 million people with disabilities, Social Security Disability Insurance and Supplemental Security Income, both core components of our nations Social Security system, provide critical lifelines. The modest but vital assistance that Disability Insurance and Supplemental Security provide makes it possible for individuals with severe disabilities and health conditions to live independently, keep a roof over their heads and food on the table, and pay for needed, often life-sustaining medications and other basic expenses.

This issue brief answers some of the common questions about Disability Insurance and Supplemental Security. Our focus in this brief is on nonelderly adults with severe disabilities. It is important to note, however, that Supplemental Security also provides vital support to some 1.2 million children with severe disabilities, as well as more than 2 million low-income seniors.

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