Many people insure their homes from fire and their cars from accidents, yet few people take the time to consider disability insurance. However, your chances of becoming disabled during your working lifetime are greater than the chances that your house will burn down. According to the Social Security Administration, a 20-year-old has a 30 percent chance of becoming disabled before he or she is able to retire. And approximately 12 percent of Americans are currently disabled.
Disability insurance is a way to protect you and your family should a disability or illness prevent you from working. It can provide compensation in addition to Social Security Disability. Unfortunately, while 47 percent of employers offer group disability coverage, others are eliminating these benefits all together or asking employees to pay more. Furthermore, the coverage offered by employer-provided disability insurance plans is much less than in previous years. These are some of the reasons why you should pay attention to disability coverage.
Another reason is the difference between individual disability insurance plans and group plans. While group plans deduct Social Security disability payments from the payouts they give disabled workers, individual plans do not. This means that, with individual disability coverage, you would receive compensation in addition to your SSDI payments, typically covering 60 percent of the salary you had received before your disability or illness.
Social Security Disability Insurance
A disability or illness can change your life forever - physically, emotionally and financially. The financial part can be one of the most difficult struggles. In addition to losing your ability to work, you can face crippling medical bills. It can also take months, even years, to apply for and receive Social Security Disability benefits and disability insurance payments.
That is why Social Security disability lawyers who understand what you are going through can be very helpful. In addition to ensuring that you have adequate and accurate evidence of your disability, they can also help you understand the process and your likelihood of success.
You owe it to yourself to do all you can to protect against financial hardship due to a disability. If you are a healthy worker considering insurance, do not forget about disability insurance. And if you face a disability, talk to an experienced attorney about your options.
Source: Washington Post, "Employers Shift Disability Insurance Costs to Workers to Trim Benefits," Michelle Andrews, Sept. 19, 2011.