Understanding SSDI and Private LTD Policies in Oregon

Key points to know about SSDI payments and private LTD policies include:

• SSDI benefits are federally administered and generally unaffected by private disability insurance payments.
• Private LTD insurers may require you to apply for SSDI as a condition of your policy.
• LTD payments can be offset

How Offsets Work in Oregon

When coordinating benefits:

• Private insurers often reduce your LTD benefit
• This prevents you from receiving more than 100% of your pre-disability income.
• Offset rules vary by policy language and insurer practices.

Impact on Your Overall Disability Income

Considerations include:

• Receiving both SSDI and LTD benefits can maximize your total monthly income while staying within policy limits.
• Coordination of benefits clauses may affect how much you ultimately receive from your LTD.
• Consulting with your insurer can clarify how your benefits interact.

When to Expect Reductions

Reductions may happen if:

• Your private disability policy has an offset provision explicitly tied to SSDI payments.
• The insurer applies the offset to prevent exceeding your maximum monthly benefit.
• You start receiving SSDI after LTD payments begin, triggering a retroactive adjustment.

Special Considerations in Oregon

Additional points:

• Oregon law does not prohibit offset clauses, so private insurers commonly apply them.
• Your employer-sponsored LTD policy terms will dictate the coordination with SSDI.
• Legal advice is helpful to review policy details and resolve disputes.