Question 1

Why is my benefit reduced by SSDI?

Accepted Answer

Most group LTD policies are designed to replace a target percentage of your income overall, not to pay in full on top of other disability income you receive. If Social Security Disability Insurance is approved, the policy typically subtracts it (and other listed offsets, like workers' comp) from what it pays, so your combined income lands at the policy's target percentage rather than stacking on top of it.

Question 2

Is my LTD benefit taxable?

Accepted Answer

It depends on who paid the premiums and how. If you paid premiums yourself with after-tax dollars, benefits are typically tax-free. If your employer paid the premiums (or you paid with pre-tax payroll deductions), benefits are typically taxable as income. Many workplace plans are a mix, which is why this calculator lets you set what percentage of the benefit is taxable rather than assuming one or the other.

Question 3

What's the difference between own-occupation and any-occupation policies?

Accepted Answer

This affects whether you qualify, not the payout math above. An own-occupation policy pays if you can't do your specific job, even if you could do some other job. An any-occupation policy only pays if you can't do any job reasonably suited to your training and experience — a much higher bar. Many policies start as own-occupation for the first 2 years, then switch to any-occupation after that.

Long-Term Disability Benefit Calculator

How the monthly benefit is built

Common questions