Article 4 of 8 in What to Know About Disability Insurance
If you believe that you can pass on private insurance and instead rely on a state disability insurance plan, you are taking a significant risk. In reality, public and state disability insurance plans can fall well short of protecting the needs of a disabled individual. With cut backs in all these programs and more stringent qualifications requirements, the need for individual disability insurance plans is higher than ever before.
TIP: Even if you are able to qualify for a federal or state disability insurance plan, it is not likely to pay for your full insurance needs. The right private disability insurance policy gives you the protection you need to get through your disability.
Why You Can't Depend on Social Security Disability Insurance
Social Security Disability Insurance provides long-term disability benefits based on your salary and the number of years you have worked and contributed to Social Security. However, Social Security disability insurance benefits replace only a limited portion of your salary and the eligibility requirements are very restrictive. To be eligible, all of the following conditions must be met:
While Social Security Disability Insurance can be a source of income protection, qualifying for the benefit is difficult because the SSDI definition of disability is very restrictive. In order to qualify for SSDI benefits, individuals must have significant physical or mental impairments that prevent them from engaging in any substantial gainful activity such as:
There are two problems with this definition:
For example: If you earned $5,000 per month as a skilled craftsman before you became disabled and are no longer able to work as a craftsman, but are still capable of doing some job that would earn $1000 per month, then you do not qualify for social security disability insurance benefits.
Public disability benefit programs such as state disability insurance, Social Security disability insurance and SSDI Insurance provide some protection against loss of income because of disability, but how much these programs might help depends on whether or not you can meet strict eligibility requirements. An individual disability insurance policy is more equipped to get you the coverage you need should you be unable to work due to a disability.
Why You Need to Buy Supplemental Disability Insurance
To give you a more vivid picture of the need for supplemental disability insurance benefits, read some of the following statistics compiled by the Council for Disability Awareness (CDA).
Purchasing a supplemental disability insurance plan is important considering how difficult it is to survive on the income provided by SSDI. Supplemental disability insurance is a critical part of your disability coverage.
Benefits of Individual Disability Insurance
Buying an individual disability insurance policy has several benefits:
If you need a quote on an individual disability insurance policy that will give you all the benefits listed above while protecting your income in case of disability, click here to visit the Free Advice quote center today!
* All SSDI statistics are from Social Security Administration, Disabled Worker Beneficiary Statistics, ssa.gov