Social Security Disability Insurance - Differences Between SSDI and Long Term Disability Insurance

Differences Between SSDI and Long Term Disability Insurance

• Social Security provides a regular monthly payment that supplements any current disability benefits already received. It also provides annual cost of living increases. A portion of these benefits may be tax free.

• Regardless of a person's age, after receiving SSDI benefits for 24 months, they are eligible for Medicare, including Part A (hospital benefits), Part B (medical benefits), and Part D (drug benefits). The date of Medicare eligibility is measured from the date of eligibility for SSDI (generally 6 months after the start of disability), not the date when the first SSDI payment was received.

• If a person receives Social Security disability benefits, any COBRA benefits may also be extended from 18 to 29 months.

• Social Security disability entitlement "freezes" Social Security earnings records during a person's period of disability so that reduced earnings during a period of disability will not have an adverse effect on retirement benefits. The resulting benefits computation may raise, but will not lower, future Social Security retirement benefits.

• A person receiving Social Security Disability Insurance may have a dependent (child, adopted child, or, in some cases, a stepchild or grandchild) eligible for Social Security benefits. This child must be under age 18 or under age 19 if in elementary or secondary school full time.

• A person receiving Social Security Disability Insurance may have a spouse eligible for Social Security benefits. The spouse must be 62 or older or caring for a child of the wage earner who is younger than age 16 or disabled.

• Benefits can be paid on the record of a disabled, retired or deceased parent to an unmarried child of any age if the child became disabled before the age of 22.

• Social Security will provide a person opportunities to return to work while still paying them disability benefits.