What are the possible sources of income for a suddenly disabled person?
(1) Social Security. Social Security disability, a type of federal insurance for workers, may be available if the worker
- has earned coverge by working 5 out of the most recent 10 year period. If not, there's no benefit.
- can prove that he/she meets Social Security's strict definition of a medical disability. (Just being off work isn't enough, even with a doctor's excuse).
- will be disabled for at least 12 consecutive months.
- can survive 4 to 24 months while the matter is being decided. Social Security is not quick. Therefore, workers need something else to tide them over while Social Security slowly meanders its way to approving or denying the application, scheduling hearings, doing examinations, etc. (70% of all applications are denied, so it's not a sure thing by any means).
(2) Employer sponsored disability insurance or sick leave. Many employer's offer some form of accumulated sick leave. They may also offer a private insurance policy for short-term and/or long-term disability. You should check to see if your employer offers this insurance, if you are covered, what the "waiting period" is, and how much benefit you may get if you become disabled. These plans usually pay while you are waiting on a decision by Social Security.
(3) Savings. We recommend savings to pay essential living expenses (rent, mortgage, utilities, food, etc.) for at least 6 months.
There are relatively few programs available to help disabled workers financially. Rent, mortgage payments, utilities....they all go on....but Social Security can take months (even years) to approve benefits. We can't stress financial planning enough. While we don't sell or endorse insurance plans, we strongly encourage you to consider protecting yourself and family from disability by an insurance plan other than Social Security--whether through your employer or a private insurer.
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