Don't Forget SSDI During Disability Insurance
Awareness Month
Workers may not realize they've
paid for coverage under federal insurance program
Belleville, Ill. - May 6,
2011 - Because May is Disability Insurance Awareness Month, it's a
good time for people to evaluate their insurance needs in the event
they are unable to work because of a severe disability. A long-term
disability insurance policy is an important option for workers,
according to Allsup, the nation's leading Social Security
disability representation company, which reminds people they may
also qualify for Social Security Disability Insurance (SSDI)
benefits.
A diagnosis of a long-term disability can mark the end of
one's working life, but it's not the end of making key decisions
related to income or healthcare. That's why SSDI benefits are
important to so many people.
"It may seem unlikely, but the Social Security Administration
reports a three in 10 chance of experiencing disability before
reaching retirement," explained Paul Gada, personal finance
director of Allsup's Disability Life Planning Center.
"People experiencing a disability that prevents them from
working will be placed in a weakened financial situation, so it's
critical that they apply for SSDI as soon as possible," he
added.
SSDI is a payroll tax-funded, federal disability insurance
program managed by the Social Security Administration (SSA). A
portion of the FICA taxes that a worker pays is set aside for SSDI,
Social Security retirement and Medicare. SSDI is designed to
provide income to people unable to work because of a severe
disability that keeps them from working for 12 months or longer, or
is terminal. Monthly benefits continue indefinitely unless the
medical condition improves to the point a person can return to
work.
An added benefit is that SSDI recipients automatically qualify
for Medicare two years after being awarded cash Social Security
benefits.
"Many former workers don't realize they have disability
insurance paid for with their FICA taxes," Gada said. "If you
file a claim and the SSA determines you meet the program's
requirements, you can receive monthly income. The monthly payment
is based upon what a person paid into the system, and while it may
not seem like a tremendous amount of money, that regular monthly
check helps a lot of severely disabled people pay for housing and
put food on the table."
SSDI eligibility is based on a person's inability to work.
There are a number of requirements to qualify for the disability
insurance program, including medical documentation of someone's
disability, and the application process is lengthy and cumbersome,
Gada said. He recommended that applicants work with an experienced
Social Security disability representative such as Allsup to better
understand if they are eligible and to improve their chances for an
SSDI award.
"Choosing an experienced representative such as Allsup to
guide you through the process will lessen the stress and improve an
applicant's chance for an SSDI award in less time," he said. "The
SSA denies two out of three applications at the application level.
In turn, Allsup is able to help more initial applicants, about 55
percent on average, to receive their benefits without having to
pursue a disability appeal." He added that 98 percent of the
applicants who complete the process with Allsup are awarded SSDI
benefits.
For more information about applying for Social
Security disability benefits, or to find out if you may
qualify, contact Allsup's Disability Evaluation Center at (800)
678-3276 for a free SSDI evaluation.