Disability Insurance Basics
What is a Social Security offset in disability insurance?
A Social Security offset provision in a group disability policy reduces your disability benefit by the amount you receive from Social Security Disability Insurance (SSDI). For example, if your group disability benefit is $3,000/month and you receive $1,500/month from SSDI, your group disability benefit would be reduced to $1,500/month.
Key Points
- Social Security offset: group disability benefit reduced by SSDI amount
- Common in group disability plans
- Individual disability plans: typically do not have Social Security offset
- Example: $3,000 group benefit - $1,500 SSDI = $1,500 net group benefit
- An independent agent can help you find policies without Social Security offset