The Social Security Disability insurance program provides benefits to disabled workers and their dependents. Workers earn benefits coverage by working and paying Social Security Taxes on their earnings.
Per the Social Security Administration website, there are 56 Million Americans (1 in 5) live with disabilities. It is particularly sobering to note that for 20 year olds insured for disability benefits that more than 1 in 4 of them will be disabled before reaching retirement age.
Serious accidents, traumatic events, serious medical conditions and mental illness can occur at any time in life. A person’s medical condition is strictly matched against the definition of disability under the Social Security Act. This Act defines a disability: “A person is disabled under the Act if s/he cannot work due to a severe medical condition that has lasted, or is expected to last, at least one year or result in death. The person’s medical condition must prevent him/her from doing work that s/he did in the past, and it must prevent the person to adjusting to other work.”
Monthly Social Security disability payments are modest. It was reported in 2015 an estimated monthly payment of USD $1,165. For workers who have contributed by paying Social Security taxes from their earnings, this payment helps with monthly expenses. Have you considered how you would replace your monthly income, if faced with an unexpected serious illness or accident?
Social Security Administration has provided a Fact Sheet for us to reference as we consider our defensive strategy. Social Security Administration Fact Sheet
For those who do not pay Social Security tax from earnings, have you considered options to protect you/your loved ones if unable to work?
May is disability awareness month. The Council For Disability Awareness provides a website with articles and resources about how to finance disability leave, if needed. Council for Disability Awareness
If you are curious about contingency planning at home and work and why this may benefit you, I invite you to contact The Living Planner. We proactively help you assess your situation in business and home and explore ways for you to protect what is important to you by asking questions. What is your risk? Your plan? Are you ready to be ready?
Contact us to learn more about how we work with individuals, business owners and employees via Email or online @ The Living Planner #LifePlanningSimplified #CareForPeopleCareForBusiness