According to the Social Security Administration, having private disability
insurance does not reduce SSDI whatsoever. This is because the private
disability insurance does not correlate with SSDI, it is not government
granted funds. You can collect the full amount of SSDI while still benefitting
from your other insurance policy.
Unfortunately, the same does not go for individual's receiving worker's
compensation or z public disability benefit. Both of these payments may
reduce Social Security benefits for the recipient and the recipient's family.
Worker's compensation is a benefit payment that is made to a worker
because the injury was job-related. The same can be true for illnesses.
Oftentimes, federal or state worker's compensation agencies, employers
and insurance companies pay out these expenses on behalf of employers.
Public disability is considered any benefit payments that may affect your
Social Security because they are paid in accordance with a federal, state,
or local law plan. For example, civil service disability benefits, temporary
state disability benefits, and state and local government retirement benefits
based on disability.
According to the Social Security Administration, your benefits will be
reduced if the combined total amount of your benefits, including worker's
compensation and public benefits exceeds 80% of your average pre-injury
or illness earnings. At this point, the SSA may reduce your SSDI so that
you are making what the SSA considers a fair amount.
Once again, any private insurance payments do not count towards this calculation.
If you run into complications with calculating your insurance, then you
may want to talk to an attorney about getting representation in order
to make sure you are getting your fair share of SSDI. Also, if a private
insurance benefit has affected your amount of SSDI, you will want to challenge
this. Hire the
Zendeh Del Law Firm, PLLC for more information.