5. Can you receive SSDI and private long-term disability insurance?
If you have a private long-term disability insurance policy (LTD), either that you bought directly from an insurance company or that you have access to through an employer, that LTD policy may also require you to apply for SSDI. Usually, the LTD policy will begin paying benefits without a waiting period and before the SSA decides if you are eligible for SSDI. If you are denied SSDI benefits, the LTD company may offer to help you with the appeals process, including hiring an attorney for you.
If you qualify for SSDI, then you may be eligible for back payments or retroactive payments. If a LTD policy has been paying benefits to you for the same months that SSDI makes back payments or retroactive payments, then the LTD policy will likely require you to repay them for those months. So it is important for you to wait to see what you might need to pay back to your PTD policy, before spending the back payments or retroactive payments from SSDI.
It is possible to receive benefits from both SSDI and a private LTD policy. However, the amount received from the private policy will be prorated. For example, if your LTD policy pays 80% of your salary and the amount that you receive from SSDI is only 60% of your salary, then moving forward, SSDI will pay 60% of your salary and the LTD policy will pay 20%.