If you are curious about Social Security Disability Insurance (SSDI) and Long Term Disability Insurance and the differences between them, you're not alone. With so many specifications for each, it is difficult to know the differences. If you are worried about protecting yourself against disability, or you or a loved one are in the process of deciding how to deal with a recently sustained disability, it is important to understand the differences between SSDI and Long Term Insurance and how one or both can help you sail through financial independence after a disabling accident occurs. Ensure that you know how SSDI is handled through the Social Security Administration or the federal government. In opposition to this, Long Term Disability Insurance is a private plan that can either be purchased by an individual or a company to protect workers against disability. Long Term Disability Insurance is common in blue-collar jobs, where workers are more likely to sustain a disabling accident as compared to a white-collar job. The Differences Social Security Disability Insurance (as well as its cousin, Supplemental Security Income) are considered national social insurance programs. That is, so long as you have been a member of the workforce at full capacity for a prescribed length of time- SSDI measures this through "credits," and a worker receives one Social Security "credit" every fiscal quarter. To be approved for benefits, you need to have acquired at least 20 credits over the past 10 years of work - no matter what your insurance situation is before the disability; you are entitled to get money through these programs. Long-Term Disability tends to have higher payouts than Social Security Insurance, and there is a much shorter wait time involved with the claims process as private companies rather than the government manages these benefits. That is not to say that there can't be snags in the process of receiving benefits from Long Term Disability Insurance as well, but the process for Social Security Disability Insurance nearly takes two years to complete, on average. Long-Term Disability does not take as long! In short, Long Term Disability Insurance is a privatized form of insurance that is purchased in the name of the claimant before any disability occurs. In contrast, SSDI is applied for after disability is sustained that prevents the individual from working.
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