Can You Receive Both SSDI and Private Disability Insurance?

Maggie Schott
November 16, 2020

It is possible to receive both federal and private disability benefits at the same time. However, it’s important to understand the income requirements and other stipulations of each one to know what your realistic monthly benefit might look like.

Considering how low average Social Security payments are, it spurs many to consider either buying private disability insurance or planning potential private options through their employer so that if they do get injured, they have support ready to go.

In short, you can receive both Social Security Disability Income (SSDI) and private disability insurance at the same time. Receiving private disability insurance payments doesn’t affect eligibility for Social Security and Social Security payments will never decrease as a result of private disability payments. However, Social Security payments could reduce the amount you receive from a private policy so that your total monthly income stays the same amount as if you were just receiving federal benefits.

What is the Benefit of Taking Both SSDI and Private Disability Insurance?

Depending on the plan, the biggest benefit is that you could receive more monthly as opposed to just taking one or the other. However, private plans tend to have a looser, more expansive definition of disability as opposed to the federal requirement of a “total disability”. Many private plans will pay out without requiring an individual to show that he or she can do no work at all.

Many insurers will require that you apply to SSDI first to determine overall eligibility before paying out on their own policies. It’s also worth noting that if you’re currently receiving worker’s compensation or military benefits for veterans, you could also receive private disability and SSDI benefits in addition to those.

Additional Things to Consider

Lastly, it’s important to remember that Social Security has a wide-ranging definition of what’s considered income. While many private benefit programs are not considered part of that, there are other things like outside assets, investments, and more that could affect your ability to qualify for federal assistance.

If you’re considering applying for SSI or SSDI, it’s potentially worth your time to contact a qualified Social Security claims attorney to ensure that your application has the best possible chance of approval. Schott Law is a trusted source for eastern Washington and Idaho applicants working through these issues. Call (509) 328-5789 to learn more and schedule a free consultation.