You Can’t Rely on Social Security Disability Insurance Part 1
Have you ever thought if you became disabled and unable to work anymore? If you are counting on Social Security Disability Insurance (SSDI) to keep you afloat. Well think again because you can’t rely on Social Security Disability Insurance.
Many people would agree on the importance of life insurance. But few of us have even thought about buying disability insurance. More likely be disable than to die before your retirement age.
It is true SSDI offers some disability coverage, but that coverage limited. First, Social Security has a narrow definition of “disability.” According to the Social Security Administration (SSA) website.
It means a person who is disable under the Act if he or she is unable to work due to several medical conditions. Or expected to last, at least one year or result in death. The person’s medical condition must prevent he or she doing work that they did in the past. Also, it must prevent the person from doing other work.
SSDI payments are small. In 2015 there was average monthly disability benefit disability benefit was a mere $1,165. It is not much when it’s the main source of income. If you get approved for disability benefits, you will not see a penny until at least six months. After the date, you became disabled if not longer.
Assuming that one in four 20 years olds will become disabled before retirement age. Then it would be worth it to look into private disability insurance definitely.
Where can you get Disability Insurance?
The best places to buy disability insurance is always with your current employers. When buying disability insurance through your employer gives you a group rate. Which will be much lower than what you will pay for an individual policy. The disadvantage is when an employer provided plans.
If your employer provides a plan. The employer will pay for the Disability policy premiums, then you have to pay taxes on benefits. Which can be a small disadvantage. Now if you pay for premiums, yet, any benefits you will receive tax-free.
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