Acquaintance has an LTDI policy through work and wants to know if she collects her social security retirement benefit before full retirement age, will it their be an offset on the LTDI benefit?

  1. 552 POINTS
    Ruth Ladas
    CEO, RLI - Ruth Ladas Insurance, LLC, Fort Myers, Florida
    Great question. Your friend should ask his/her benefits person at the work site about the details of the insurance contract. Typically, when someone has a qualifying disability and can't work the policy pays the monthly benefit until age 65. There are many different forms of disability income policies - some are more liberal than others regarding the definitions of disability and they payout of benefits.
    Answered on May 23, 2015
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The Social Security Administration will not make your friend discontinue receiving long term disability benefits just because she chose to receive Social Security retirement benefits early. However, whether there will be an offset depends on the features of her particular group plan. .
    Answered on May 29, 2015
  3. 11783 POINTS
    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Actually it's going to depend on your work policy's wording. Many plans have a SSDI clause that will reduce benefits if you qualify for SSDI. Disability plans group and individual will have sections that answer you question in their definition of the policy terms. So the answer may vary based on your contract language.
    Answered on January 24, 2018
  4. Did you find these answers helpful?

Add Your Answer To This Question

You must be logged in to add your answer.

<< Previous Question
Questions Home
Next Question >>