The Difference Between Social Security Disability Insurance (SSDI) and Other Long Term Disability Income Insurance Plans

Government disability income insurance programs, like Social Security Disability Insurance (SSDI) differ from commonly available plans in a few areas that you should know. Unlike individual disability insurance coverage often used by professionals, SSDI functions more like a group policy. Beyond this issue, however, the similarity might end. Some of the differences are noted below.

• SSDI may allow benefits for immediate family members of the disabled person that are not available in private disability income insurance coverage. With SSDI, under some conditions, spouses, divorced spouses, children, and/or disabled children are also allowed disability benefit income.
• Even though SSDI coverage is not the same as an individually purchased policy, your disability benefits may be tax free.
• The definitions of disability may be different with SSDI as compared with those in other group or individual employee disability income insurance coverage.
• Eligibility for SSDI benefits is dependent on income covered by the Social Security earnings you have enjoyed but often disregards other legitimate income.

SSDI definitions of disability and qualifications for receiving benefits are neither good nor bad. They are just sometimes different from those that often are part of private disability income insurance programs. Your eligibility or lack thereof will be determined on the specific regulations applicable to SSDI. You should learn the language of both your private disability income insurance plan, group or individual, and the provisions in SSDI to understand how your coverage works. Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.