The Difference Between SSDI and Long-Term Disability

Not all disability benefits programs are created equal. While some programs share similar features, there are key differences that you need to be aware of. Failing to understand the types of benefits available, particularly when disability is involved, can lead to frustrating complications. The similarities between long-term disability insurance and Social Security Disability Insurance often cause confusion.


  • Long-Term Disability (LTD) Insurance. As its name states, long-term disability insurance is an insurance policy you can purchase to ensure that you and your family receive financial support in the event that you become disabled for an extended period of time. Typically, long-term disability policies take effect after short-term disability plans expire.
  • Social Security Disability Insurance (SSDI). Social Security Disability Insurance is funded by the federal government. Individuals pay into Social Security over their lifetime; should these individuals become disabled and if they meet the Social Security Administration’s disability requirements, they may begin to receive disability benefits.

Extent of Coverage

  • LTD. Generally speaking, LTD policies will pay 50-60% of the salary that would have been received from working. Payment amounts and the lifetime of the coverage tend to vary from policy to policy.
  • SSDI. To be eligible for SSDI benefits, a person must have accrued a certain number of work credits. This is done by paying Social Security taxes over your lifetime. The amount of money received from an SSDI policy is dependent on the number of credits earned throughout employment.

These are only a couple examples of the differences between long-term disability insurance and Social Security Disability Insurance. If you have any questions or concerns about which policy is right for you, don’t hesitate to contact the Martin Law Group, LLC in Tuscaloosa. We have the experience and the knowledge to ensure that you are receiving the benefits you are entitled to. We have the tools to win your case: If we don’t win it, we don’t get paid. Call us today.

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