How can you best protect yourself in the event of an unforeseen accident or illness? Learn about Disability Insurance and Social Security Disability Insurance and your best available options.
Many of us worry about the possibility of becoming injured or disabled. The thought of being unable to perform the work we were once able to do and to maintain the living that we once enjoyed gives everyone pause. To calm these nerves, it is useful to know that there are certain programs and insurance options that protect injured and disabled workers and that help take care of them in their time of need. Both Disability Insurance and Social Security Disability Insurance can fill the gap in injured or disabled workers’ incomes, and can make a huge difference in the lives of those who are not able to continue working due to an illness or injury.
What is Disability Insurance?
Disability Insurance is private insurance that can be purchased just like many other types of insurance. Disability Insurance specifically replaces a significant portion of an insured’s income when he or she is sick or injured and unable to work. This kind of insurance can give a person peace of mind in knowing that if something unexpected happens that they will still receive an income through their insurance benefits and still be able to pay their monthly expenses.
Much like life or home insurance, Disability Insurance policies are tailored to the policyholder’s needs. A monthly premium for Disability Insurance will vary depending on the type of disability covered, the type of policy selected, and any other optional protections the policyholder wants to add.
What is Social Security Disability Insurance?
Social Security Disability Insurance is a government program run by the Social Security Administration that offers cash benefits for individuals who are blind or who have a disability. These benefits are funded through payroll taxes and are available to workers who have earned the benefits by working for a certain amount of time and making contributions to the program.
To qualify for Social Security Disability Insurance, a claimant must have an injury or disability that is expected to last for a minimum of 12 months or end in the claimant’s death. If a claimant obtains Social Security Disability benefits, his or her monthly payment is based on the the worker’s Social Security earnings record. As a result, the higher the claimant’s salary was, the higher his or her monthly Social Security Disability Insurance benefits would be.
Should I have both?
When a person becomes too sick or injured to continue working, there are a few sources of income that will be available to him or her. While Social Security Disability Insurance can provide vital benefits to eligible workers, more than 60% of the claimants who apply for this program are initially denied and the application process can be lengthy. Further, even if an applicant is able to obtain Social Security Disability benefits, it is possible that the payment he or she is given will not cover all of the person’s monthly expenses. To ensure full financial stability in case of an unforeseen illness or injury, Disability Insurance can be purchased ahead of any problem and Social Security Disability Insurance can be applied for once the issue occurs.
For more information on long and short term disability insurance and Social Security Disability Insurance (SSDI) watch our video.
If you are thinking of applying for Social Security Disability Insurance, consider The Good Law Group’s office. Contact our office online for a free case evaluation or call #(847) 577-4476.