Disability Insurance Basics
What is a Social Security offset in disability insurance?
Some disability insurance policies have a Social Security offset provision that reduces your disability benefit by the amount you receive from Social Security Disability Insurance (SSDI). Policies with a Social Security offset have lower premiums. Policies without an offset provide the full benefit regardless of SSDI.
Key Points
- Social Security offset: disability benefit reduced by SSDI amount
- Policies with offset: lower premiums
- Policies without offset: full benefit regardless of SSDI
- SSDI: federal disability program with strict eligibility requirements
- An independent agent can help you compare policies with and without Social Security offsets