What’s Changing In Social Security’s Disability Insurance Program?

According to a report by the Social Security Administration, the Social Security Disability Insurance program is expected to deplete its reserves at the end of 2035 if changes are not made. Instead of relying on a government program to protect their income in the event of a disability, many people are opting to protect themselves with personal disability insurance. Disability Insurance gives you protection by replacing a portion of your income, usually between 50 percent and 70 percent, if you become disabled as a result of an injury or illness. Disability Insurance addresses a two-fold financial problem.  People that become disabled often find they are unable to work and are also confronted with unexpected medical expenses.

What About Workers Comp?

People often think of worker’s compensation as a disability safety net. It’s not.  Worker’s compensation only pays benefits to individuals who become disabled while at work. If your disability is the result of an injury outside of work you may not qualify for worker’s compensation.

Each state makes its own rules about worker’s compensation payment and benefits, so coverage may vary considerably. It’s worth learning what your state offers so you can plan accordingly to supplement coverage on your own. Likewise, if you have an active lifestyle that puts you at a higher risk of disability, considering an extra layer of protection may be a sound financial decision.

How Does Disability Insurance Work?

Personal disability insurance can be structured to pay a benefit weekly or monthly. Importantly, benefits are not taxable, as long as you have paid the premiums in full.You can usually tailor your coverage to suit your needs. For example, you can adjust the benefits or elimination periods. You might decide to opt for comprehensive protection or decide to define your coverage more specifically. Some policies offer partial disability coverage, survivor benefits, cost-of-living adjustments, residual benefits, and pension supplements.  It is common to purchase Disability Insurance while you are in your working years since this is the time period you are at risk for losing your ability to earn income. Federal disability programs usually offer modest supplemental income, and often times policies offered through your company only pay limited amounts.   Most likely, it’s worth learning more about Disability Insurance and securing a policy that makes sense for you.

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Learn More About IFW’s Life Insurance, Disability Insurance, and Long-Term Care Planning Services

What is your most valuable asset? The answer is you and your ability to earn income. This service is a must for anyone that wants to make sure they not only learn how to best protect themselves and their families but also discover meaningful benefits and best practices when it comes to insurance and protection.

• Find out what types of insurance make sense for your unique situation
• Learn how to determine an appropriate amount of coverage
• Pay the least expensive premium, while receiving the best value
• Discover how to use life insurance as a unique financial tool
• Plus, every participant will receive a free IFW Insurance Personal Report, including a review of all their current insurance and recommendations to improve their risk management program.

REGISTER HERE FREE FOR THE NEXT PROTECTING YOUR GREATEST ASSET LIVE WEBINAR 

The IFW provides valuable financial education, resources, and services that help people live their best life. 

Please remember, be mindful of the messenger that positions certain products or services as “always” bad or “always” perfect.  The fact of the matter is there are no “bad products” or “perfect products”.   The right product is the one that aligns with your goals and objectives. 

The Institute of Financial Wellness believes when it comes to financial decisions; never say “Never” never say “Always”…It Depends.