SSDI Changes Complicate the Disability Benefits Maze

[Northeast Agent]

SSDI Changes Complicate the Disability Benefits Maze | ThinkAdvisor

Thanks to the Social Security Administration’s (SSA) recent changes to the Social Security Disability Insurance (SSDI) program, those timelines could become longer for some claims and cost LTD carriers more than they originally anticipated. The key to understanding how the SSA’s changes affect LTD carriers is this: Every day that an individual spends waiting for their Social Security disability benefits to be approved, LTD carriers provide the full replacement income for individuals who’ve had to stop working due to an acquired disability.

 

[somarco]

Every day that an individual spends waiting for their Social Security disability benefits to be approved, LTD carriers provide the full replacement income for individuals who’ve had to stop working due to an acquired disability.

True, but once SSDI is awarded there is a lump sum back payment. When that happens the LTD carrier adjusts future benefits accordingly until it is all caught up