Getting approved for Social Security disability doesn’t necessarily add to total monthly income — most group LTD policies reduce the LTD benefit dollar-for-dollar by any SSDI received.
How it works
Subtracting SSDI and dependent SSDI benefits from the gross LTD benefit gives the net LTD benefit actually paid by the insurer; adding all three back together shows total monthly income, which is often unchanged from the gross LTD amount alone.
What this does not include
This does not include policy-specific minimum benefit floors (many policies guarantee some minimum dollar amount or percentage regardless of the offset) or how a later SSDI cost-of-living increase interacts with an already-set offset amount.
How to use this calculator
- Enter the gross monthly LTD benefit, SSDI benefit, and any dependent SSDI benefit.
Frequently asked questions
Why do LTD policies include this offset at all?
It keeps the insurer from paying full LTD benefits on top of full SSDI, which would mean the disabled worker collects more in total disability income than they earned working — offsets keep total benefits closer to pre-disability income.
Am I required to apply for SSDI if I have LTD coverage?
Most group LTD policies require claimants to apply (and pursue appeals) for SSDI, and may estimate and apply the offset anyway even if the claimant doesn’t pursue it.
Does the offset apply to individual disability policies too?
It’s far less common — most individually purchased (non-group) disability policies don’t include a Social Security offset, unlike most employer-sponsored group LTD plans.
