Yes. You can receive private disability benefits, even if you are receiving funds through supplemental income sources, or other wage replacement benefits, such as Social Security Disability Income (SSDI) or workers’ compensation — there may be an offset for certain benefits, however.
- When it comes to supplemental income sources, such as passive income, inheritance, personal gifts, etc., your private disability benefits are generally entirely unaffected.
- Private disability benefits are a form of wage replacement, they are not income-variable.
- Whether you are rich or poor, you are entitled to the full disability benefit that was bargained for through the insurance contract.
Now, when it comes to SSDI benefits, most ERISA long-term disability plans have an offset that requires you to apply for SSDI benefits. However, private disability policies usually do not have the same application and offset requirement. This is policy specific though and our experienced disability insurance attorneys are available for consultation in order to help you understand your policy.