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Maryland Long-Term Disability and Social Security Disability Benefits: What is the Difference?

October 26, 2021 Disability

If you face a long-term disability and cannot work, you may wonder what options you have for paying your bills. If you are lucky enough to have a long-term disability (LTD) policy, you know that at least a portion of your income will be replaced. But can you qualify for Social Security Disability (SSD) benefits? Can you receive both benefits at the same time to replace your entire income? It is essential to understand how these benefits relate to each other so you can make the necessary financial arrangements while you remain disabled. 

How LTD Benefits Work vs. SSD 

LTD plans pay an income replacement benefit once the insurance company agrees that you have suffered a long-term disability and cannot work. It typically provides coverage from the time your short-term disability benefits run out and will normally pay approximately 60% of your salary or earnings at the time you were injured.  

On the other hand, SSD benefits will pay only 25-30%  of your earnings at the time of your injury. In addition, you need to have worked long enough and earned sufficient work credits to qualify. Furthermore, you are not eligible to apply for SSD until you have been disabled for five months, and you cannot begin receiving benefits until after the sixth month. 

To further complicate matters, most SSD claims can take several months to get approved. LTD claims are usually approved more quickly, meaning that you could be receiving benefits while you wait for your SSD claim to be approved. 

Can You Receive Both LTD and SSD Benefits at The Same Time in Maryland?

Technically, yes, you can receive both LTD and SSD benefits at the same time. In fact, many LTD policies require you to apply for SSD benefits to receive LTD benefits. 

However, it is imperative to understand that any SSD benefits you receive will offset your LTD benefits, dollar for dollar. For example, let’s assume Maria is awarded $4,000 per month under her LTD policy. Eventually, her SSD claim is approved, and she is awarded $1,500 per month. As a result, her LTD carrier will reduce her monthly LTD benefits by $1500 per month. 

Without commenting on whether or not this is fair, filing an SSD claim may be the best way to protect your LTD benefits. If you do not file the SSD claim, your LTD carrier may eventually terminate your benefits, claiming you aren’t actually disabled. 

Contact Disability Lawyer Emmett B. Irwin to Get the Benefits You Deserve 

The first step in getting your benefits is to navigate the claim process successfully, and claims are routinely denied for various reasons. Disability lawyer Emmett B. Irwin focuses on disability and medical benefits, which means he knows how to win your case. To discuss your claim and how we can help, call us today at 443-839-0818 or complete our online contact form to schedule a free consultation.