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Long-term Disability Insurance and Social Security Disability

Most LTD policies require an applicant to also apply for Social Security Disability Insurance. Under most policies, if a person is accepted for both LTD and Social Security, the insurance company will deduct the Social Security payment from the monthly amount the company pays.

So if you are approved for both, you will not get more than the LTD amount. Usually the LTD amount is higher than the Social Security amount.

However, with Social Security, after a two-year waiting period, the individual becomes eligible for Medicare. Some people will say, "Why should I persevere in applying for Social Security if it will only be deducted?"

There are several reasons. If Social Security turns you down, then the insurance company may use this as a reason to question your continuing eligibility. Reversing this logic, if Social Security approves your application, you can use the finding of the federal government as an argument to the insurance company of your continuing disability.

Also, if you are approved for Social Security disability, then Medicare is a decided benefit if you have no future continuing health insurance.