Long-term disability benefits are typically coordinated with which benefit plan?

• A. Social Security
• B. Medicare
• C. Workers' Compensation
• D. Employer's Supplemental Plan

Answer: (A)

Disability income benefits are designed to replace lost earnings while avoiding duplication with other sources of disability income. For long-term disability, the most common coordination is with Social Security disability benefits. When SSDI is available, the LTD plan typically offsets its payments by the SSDI amount (the plan pays the remainder after subtracting SSDI), so total benefits don’t exceed the actual income loss. This reflects the idea that multiple programs shouldn’t pay more than the insured’s reduced earnings. Medicare, while important for health coverage, doesn’t serve as an income-displacement benefit to offset LTD payments. Workers’ compensation may interact with LTD in some cases, but Social Security is the standard coordinating source in most plans.