Rely on Disability from Social Security?
That's a Bad Idea!
by Jack Le

The Social Security Administration (SSA) offers disability income for those who are misfortunate enough to suffer a disability and have met the criteria to qualify for disability income. The eligibility criteria for disability income benefits from Social Security are that, due to a sickness or injury:
1. You cannot perform the work that you did previously;
2. You cannot adjust to other work because of your medical condition(s);and
3. Your ailment has lasted or is expected to last for at least one year or to result in your death.

These are pretty strict criteria. And note that benefits are not payable for partial or short-term disabilities. Before benefits can be paid out to you, you are expected to rely on other sources of income such as worker’s compensation, insurance, or expected to deplete your family savings and investments.

Even if you survive a disability for a year and have depleted your savings and investments, you still may not even meet the Social Security Administration’s eligibility criteria. Note that the SSA requires that you make adjustments to go to work in some other occupation different from what you did before. For most people this requirement is unacceptable. An example might include working at a convenience store after you are too sick to work in your regular occupation. And relying on worker’s compensation would not be a good idea either because it will only cover for injuries that occur while you are actively working.

The New York Times December 10th, 2007 article “Disability Cases Last Longer as Backlog Rises” by Erik Eckholm reports that decisions on a claim can take as long as three years. In the mean time, many people have lost their homes, declared bankruptcy or died while waiting for a decision. The application process is long and rigorous. There are over 750,000 cases currently backlogged. This has grown from about 311,000 backlogged cases in 2000.

The solution to alleviate the effects of a disability relies on you and your long-term disability insurance (DI) policy rather than the SSA. Your individual DI policy may be tailored to
1. Pay benefits after only 90 days of being disabled.
2. Pay you when you are totally disabled from performing the material and substantial duties of your own occupation.
3. Continue your DI benefits even if you go to work in another occupation as long as you are disabled from working in your original occupation.
4. Pay benefits until your income recovers, until you reach the age of 65, or potentially pay benefits for life.
5. Pay partial benefits for partial disabilities.
6. Make contributions into a retirement protection program if you are totally disabled .
7. Cover your normal business expenses.
8. Make payments on our business loans.

You and your family are much better off if your income is protected by a disability insurance policy. Responsible planning for protecting your most valuable asset, your income rely on attaining individual DI.

To speak with a disability insurance specialist call (888) 513-2300, or Request a quote on-line.

Disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America, New York, NY.

This publication is provided as a courtesy and does not modify the provisions of any policy. It is offered for the purpose of education and information only and is not intended to constitute tax or legal advice. For information on your specific situation, please consult your personal legal or tax advisor.

Please consult with the Social Security Administration for complete details concerning eligibility requirements for Social Security disability benefits.

Retirement Protection Plus is not a pension plan or a substitute for one.