Social Security Q&A

Question from Phran:

Yesterday I received word that Long Term Disability was approved through Prudential, the company that handles the short and long term disability through my employer. The representative from Prudential suggested I start applying for Social Security Disability right away even though it hasn't yet been 6 months. I will be doing that but here is my question: Does anyone know if it is more or less difficult to be approved through Social Security for disability than it is through a private insurance company like Prudential? Being ill is stressful enough without all this red tape and worry about bills and health insurance.
Thanks to anyone who has an opinion!

Response from Alan:

Hi Phran,

Congratulations on your LTD--that's a big relief, I know.

For Social Security, your disability must be EXPECTED to last 12 months or more. As long as that expectation is established by your condition and medical records, you can apply at any time. You don't need to wait even a month.

The "6 months" you refer to is likely the waiting period. Officially, it's 5 months, but it's 5 FULL months. So unless your disability starts on the first day of a month, the waiting period can be more like 6 months than 5.

The second part of your question is more difficult to answer. Each private insurance company has its own rules, and can even offer different plans to different employers. Some require a determination from Social Security be made first, and then adopt that decision. Some, like yours, make their decisions independently. Some make a preliminary decision, but then adopt SSA's later. Many plans offset your Social Security and other company retirement benefits against your long term disability; for instance if your LTD is $2000 per month, Social Security is $1000 and your company retirement is another $1000, LTD drops to zero.

I'm afraid comparing LTD plans in general to Social Security is really a matter of comparing apples to oranges; you just have to look at each one separately.

Best wishes on filing--and if you haven't already, take a peek at the article on filing at: http://www.phcentral.org/actioncentral/articles/ss_claims.shtml

Alan

December 4, 2007