When you are disabled and are unable to work you may be eligible for an employee-based long-term disability program, but this is different than the public Social Security disability options.
Some people may think that a claim for Social Security disability has something to do with their long-term disability insurance provided by an employer. The insurance provider of your private long-term disability insurance plan will make sure the two are connected.
Social Security disability insurance is public disability program for those who have become disabled and are unable to work at a Substantial Gainful Activity (SGA) level, provided you have worked long enough and more recent enough. The technical requirements of the program require most workers to have worked at least five out of the last 10 years to develop enough work credits.
A private long-term disability insurance policy, usually purchased by an individual, or obtained through an employer, will pay benefits while an employee is injured and out of work for a period of time, but most group term disability policies require that you pursue a Social Security disability claim.
There is good reason the administrators of long-term disability plans require you to apply for Social Security disability benefits. Most group long-term disability policies require that you pursue Social Security disability benefits. These policies require that you reimburse the insurance company from the back benefits you receive from any Social Security disability award. The insurance company will probably follow through to make sure you have filed for Social Security disability and will request proof that you filed for Social Security disability. So, some long-term disability plans are more like a loan.
In order to understand your particular long-term disability insurance coverage you should understand the basics of your group disability plan. You should request a copy of this policy from your employer if you do not have one.
For more information about how long-term disability plans impact Social Security click here.
