I?receive ssdi plus a tax free monthly check from a disability insurance i will receive the disability checks until i,m 65 which i,m 58 now the disability insurance wants to give me a lump sum settlement what are the pros and cons is it still tax free and can I lose any of my ssdi
SAVAGE SAYS: I’m glad you thought of this before accepting a lump sum settlement. I would check with Social Security, and ask anonymously and hypothetically, whether the amount of a lump sum would impact your SSDI. But, in general, given the low interest rate environment, and your need for ongoing income, plus the fact that they are not likely to offer you a great deal on this lump sum, I would guess that you might be better off turning it down — even if it isn’t large enough to impact your SSDI. At least, that way you will be getting those monthly checks for another 7 years and won’t be tempted to spend or unwisely invest any lump sum!