Legal Question in Insurance Law in New York

Re: disability and retirement

The answers to your questions depend upon several factors. First, is your long-term disability ("LTD") insurance through your employer or through an insurance policy you purchased on your own? Employer-sponsored LTD insurance usually limits the duration of benefits based upon your age when the disability starts. So, if you were in your 60's when you became disabled, your employer's LTD plan will likely only pay you benefits for a specific number of months. E.g, 61 at the time of disability will pay 48 months of benefits; 62 at time of disability will pay 36 months, etc. The exact benefit duration will depend upon the terms of the LTD plan.

If you purchased the LTD policy yourself, then the policy will state how long benefits continue. Typically, individual policies will pay for a set number of months (e.g., 24 months); to a specific age (e.g., 65 or 66 or 67); or even provide lifetime benefits.

As for the question of retirement, that too depends on the employer-sponsored LTD plan or individual LTD policy terms. For most employer-sponsored LTD plans, disability benefits are reduced by the amount of other benefits you receive -- other benefits such as pension benefits or Social Security benefits. Sometimes, employer-sponsored LTD plan benefits terminate upon "retirement."

With respect to individual LTD policies, retirement benefits typically, but not always, do not affect the disability benefits.

As for Social Security disability, you should have applied for benefits immediately. Your Social Security benefits may reduce your other disability benefits, but they also make you eligible for Medicare. Further, when you start to receive Social Security retirement benefits, your monthly benefit will be based on your average lifetime earnings, So, if you stop working and then wait a couple of years to apply for Social Security retirement, you will add a couple of 0 years into that average.

Of course, the information provided above is very general and is not intended as legal advice. You should consult with an attorney licensed in the state in which you reside prior to making any decisions. If you are located in New York, please feel free to contact my office for a consultation.