Social Security Disability vs Long-Term Disability Insurance

Both Social Security and long-term disability insurance can provide disability coverage for you if you are unable to work. While these items are similar, they have some differences that you should be aware of. Here are a few things to consider about Social Security disability and long-term disability insurance.

Social Security Disability

Social Security disability is provided by the federal government with funds from payroll taxes. If you are injured, you can apply for benefits from the Social Security Administration. With these benefits, you may also be able to get help if you have children under the age of 18. Social Security disability will potentially provide them with assistance in addition to giving you money for your disability.

Long-Term Disability Insurance

Long-term disability insurance is a policy that can be provided from your employer as part of a benefits package, or it can be purchased individually on your part. Many people purchase this type of insurance so that they will be able to receive additional money on top of Social Security disability if they are ever disabled. Receiving Social Security disability payments can reduce the amount of money that you receive from your long-term disability insurance policy.

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