As long-term disability insurance can be quite expensive, many working professionals contemplate whether or not it really is necessary as social security disability benefits won’t cost you anything. However, the real debate should be whether or not social security disability benefits will be enough to cover your needs in the event that you are faced with a crippling disability that hinders you unable to earn an income. Unfortunately, there are issues with SSI that working professionals should consider before assuming that long-term disability insurance is merely an additional expense that could be avoided.
Benefits Of Long-Term Disability Insurance
Disability insurance is basically protection from loss of income that results from a disability. This type of insurance policy will cover you whether your disability is the result of a medical condition or an accidental injury. Policies do vary quite a bit and therefore, it is recommended to always assess your policy details before purchasing a policy with any insurer, even if your employer has provided you with disability insurance as part of employee benefits.
Even though private disability insurance can be quite pricey, there are many instances where disabled individuals qualify for both private disability claims as well as social security disability claims, which means that you may be able to best protect your income by opting for private coverage. As private coverage payouts would also be significantly higher in comparison to social security, it would be a wise move to opt for affordable private coverage. Depending on your policy, you may be eligible for payouts as well as benefits that will cover your medical bills and supplement your income, therefore, ultimately providing you with peace of mind during the difficult time. Coming to terms with a long-term disability is overwhelming, which is why working professionals should take measures to protect their incomes.
Short-term disability insurance may be quite a bit cheaper, although, compensation will not be able to assist with the costs of a long-term disability. For this reason, most working professionals shy away from short-term disability policies as they simply cannot suffice when claims are necessary.
What To Expect From Social Security
Social security and disability insurance hardly compare as most of the details vary significantly. While working professionals are required to pay as much as one-third of their annual income towards their policies, there is no cost relevant for social security. In addition to this, payouts for social security are just over $1,000 while private insurance often supplements up to 60% of your income that is lost as a result of your disability. What’s more, social security payouts can be paid monthly for an indefinite period of time, which means that you may be able to receive these payouts even after you have retired while private insurance payouts are generally for either two and half years, ten years, or until retirement depending on your policy details. Therefore, it would be ideal for working professionals to rely on both social security as well as a private disability policy as this would be the most appropriate method of keeping afloat financially.
Costs Of Disability
When confronted with a crippling disability, there are so many costs involved that many professionals are also confronted with feelings of depression. Medical bills can be understandably extreme and you may also have to make adjustments to your home, such as installing wheelchair ramps and a walk-in bathtub to enhance the quality of your life. Depending on the severity of your disability, you may have excess bills that would need to be covered, which is why professionals should claim for social security even if they have a private disability policy. In the event that you are struggling with depression and/or anxiety as a result of your disability, your medical bills would include therapy costs and any necessary medication.
Planning For The Unexpected
It is most unfortunate that a large majority of young working professionals rule out the possibility of becoming disabled due to injury or illness as they assume they are unlikely to experience such a reality. However, rather than rule out the possibility and later find yourself in an extremely difficult emotional and financial situation, it would be wise to plan for the unexpected and opt for insurance policies that will protect the future of your income should the worst-case scenario become a reality. When considering that a car accident, work-related accident, and several types of medical conditions can result in disability, it would not be logical to assume you are above the statistics.