No, you should pursue a claim with both the private disability insurance company and the Social Security Administration in most cases. To understand why, please consider how both the Social Security Administration and the private disability insurance company handle this type of situation.
How the Social Security Administration Will Consider Private Disability Insurance
The Social Security Administration (SSA) will not consider any private disability insurance benefits that you receive, or may receive, when deciding whether you are eligible for Social Security disability. The Social Security disability system is not needs based. In other words, your financial needs are irrelevant to your application and, regardless of your income from other insurers, you may be able to recover Social Security disability benefits if you qualify for such benefits.
How Private Disability Insurance Will Consider Social Security Disability
However, you should check the terms of your private disability insurance to determine exactly how the private disability insurer will account for Social Security disability. Some disability insurance policies require people to apply for Social Security disability benefits and may deduct the amount received in Social Security disability benefits from the amount paid by the insurance company. Of course, even if this is true, you are still getting more in disability benefits than you would from Social Security disability alone.
Accordingly, it is important to read the terms of your disability insurance policy carefully and to take the steps that allow you to recover the greatest amount possible in disability benefits. If you have any questions or would like to learn more about applying for Social Security disability, we invite you to start a live chat with us today.
by Paul B. Burkhalter Managing Partner of Morgan & Weisbrod, Board Certified in Social Security Disability Law.