Understanding the SSDI and Private LTD Relationship

Key points about how the two benefits interact in New York:

• SSDI benefits are generally paid in full, unaffected by private LTD income.
• Private LTD policies may reduce your disability payment if they have a Social Security offset provision.
• The SSA does not reduce your SSDI payments due to receiving private LTD benefits.

Social Security Offset Clauses in LTD Policies

How private insurers handle SSDI:

• Many LTD insurers include an option to reduce benefits by the amount you get from SSDI.
• This means your total combined disability income remains balanced without duplication.
• Review your LTD contract carefully to identify such provisions.

State-Specific Considerations in New York

Important to know for policyholders:

• New York laws do not prohibit SSDI cannot be offset by private LTD payments.
• However, New York requires clear communication about any offset provisions when issuing policies.
• Your circumstances and insurer terms dictate how payments are coordinated.

Planning Your Disability Income

Maximizing your benefits:

• Coordinate your private LTD and SSDI applications to avoid surprises.
• Consult experts to understand payment reductions based on policy language.
• Ask about potential repayment requirements if SSDI benefits increase later.

Common Misconceptions

• SSDI is reduced by private LTD – not true; only LTD payments may adjust.
• All LTD policies offset SSDI benefits – varies by insurer and contract.
• Receiving both benefits is prohibited – often allowed but coordinated.