Understanding Coordination of Benefits

Key points about private LTD and SSDI payments in Arizona:

• SSDI benefits are federally managed and generally paid regardless of private LTD income.
• Some private LTD policies include offset provisions to reduce your payout by the amount you receive from SSDI.
• Arizona law does not mandate reductions in SSDI due to private LTD payments.

How SSA Views Other Income

Regarding SSA considerations:

• SSDI payments are typically independent of private disability income.
• SSA focuses on your work credits and medical criteria, not other benefits received.
• Private benefits do not count as earned income affecting SSDI eligibility.

Potential Impact of LTD Offsets

What you should know about policy terms:

• Your private LTD insurer may reduce payments if you receive SSDI to avoid duplicated benefits.
• Check your LTD policy for offset clauses describing how other disability benefits affect your LTD.
• This reduction is from your LTD, not SSDI payments.

When to Notify Your Insurer

Important steps include:

• Inform your LTD provider once you start receiving SSDI benefits.
• This helps ensure correct calculation of your disability benefits under your policy.
• Failure to update may lead to overpayments or later recoupments.

Consulting Professionals

To safeguard your benefits:

• Seek guidance from legal experts familiar with Arizona disability law.
• They can help understand your rights and obligations related to LTD and SSDI.
• Coordinating benefits strategy prevents unexpected payment adjustments.