Understanding Employer Disability Coverage and Social Security Disability (SSD) benefits


There are many different types of employer-provided disability plans. Some policies may cover only long-term disability while others cover short-term disability. Some employers completely cover the premium costs of disability coverage for their workers, while others offer such policies at discounted group rates to employees.

SSD benefits, in contrast, are available to everyone who has worked for a sufficient length of time, provided that they meet the basic eligibility factors. However, unlike some employer disability policies, SSD only covers impairments that prevent you from performing substantial work for a year or more and with SSD, there are no partial or short-term disability benefits.

Yet the two types of disability benefits – employer disability coverage and SSD are not mutually exclusive. In fact, most employer-provided disability plans provide that, in order to obtain disability benefits under the provisions of the plan, you must be approved for Social Security disability benefits. Many private plans do not require an offset; in those cases, an individual who is approved for Social Security disability benefits can also receive private benefits. SSD benefits include Medicare health insurance (after a waiting period), and, if practicable, vocational rehabilitation or other types of support services that can ultimately help you get back to work. Your employer-provided disability package may overlap or exceed SSD in terms of health insurance and other benefits, depending on the provisions of your individual plan.

An industry study conducted in 2010 showed that group disability insurers are more generous in approving claims than the Social Security Administration: just over 75 percent of long-term disability claims submitted to group disability carriers were approved.

With either type of disability benefits, persistence is the key. Getting denied initially does not mean you aren’t entitled to these benefits. Don’t give up your claim. Do consider finding a qualified attorney to represent your interests.