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Disability Benefits: Social Security Disability Vs. Long Term Disability

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If you are recently disabled and no longer able to work full time, it's important to know what benefits you qualify for. There are no specific laws that state your employer must provide long term disability benefits, but many employers offer this option to employees. If you signed up for long term disability benefits through your employer, you are in luck. The compensation you will receive from a long term disability policy is generally more than what you will receive from the government sponsored social security disability program.

Your Disability Does Not Have to Be Work Related

Just because you have long term disability coverage from work, this does not mean that your disability has to be work related. If you are not able to work because you are injured, sick or incapacitated, for whatever reason, your long term disability insurance will pay you while you are not working.

You Can Work Part Time on Long Term Disability and While Receiving Social Security Disability Benefits

Even if you are able to work part time, disability insurance will help cover the financial gap between what you were earning, and what you are earning now. If you are on social security disability, any month you earn more than the limit allowed you will not receive benefits that month. In 2014, that limit was only $1,070, which is considered substantial, gainful activity. With long term disability, you can work and earn up to the amount you receive from your insurance policy every month. This means that if your policy is paying you $4,000 a month, you can earn $3,000 and the policy would pay you $1,000. If you earned the full $4,000, the policy would not pay you that month.

If Your Social Security Disability Stops because of Substantial Gainful Activity

Once you have been approved for social security disability, it isn't as difficult for the disability to be reinstated. You can return to work, but you have a five year period once you begin working to easily open your claim again. For example, if you become disabled because you are battling cancer. You spend a year fighting, and collecting disability benefits. You return to work after a period of remission. Two years later, your cancer returns and you must go out of work again. You do not have to go through the entire process again, but your claim will be opened back up.

You Can Collect Both Social Security Disability and Long Term Disability Benefits at the Same Time

Not only can you collect both benefits at the same time, but most long term disability policy providers will make you apply for social security disability benefits. If you are entitled to $4,000 from your long term disability policy, and you receive $1,000 a month from social security, your long term disability provider will pay you $3,000 each month. Contact a company like Iler and Iler for more information.