As an advisor for Disability Insurance, I have heard a variety of reasons why someone may not want to invest in this type of coverage. One of the top reasons I have run across is people wanting to rely on Social Security Disability Insurance (SSDI). Many think that this is the same thing as Disability Insurance that is bought from an advisor or from job. But, there are a variety of differences between the two you should know about before deciding what kind of coverage you want to lean on.
Disability Insurance – The Main Points
- Bought from an advisor or your job while you are actively working.
- Insures your earnings so that you receive money in case you can not work one day.
- You design your policy according to your budget, lifestyle, and available options.
- You apply, take a medical exam, and hear back in about 1 month.
- You pay for it every month.
- When you can’t work, you will receive money to pay for the things you need and want.
- You can cancel your policy at any time.
SSDI – The Main Points
- This is a government based program.
- Pays you money if you become disabled before the retirement age.
- You need to qualify and be approved to get SSDI.
- You must meet their work eligibility and medical eligibility requirements.
- Most people get denied the first time they apply.
- When and if you get approved, you need to wait about 5 months in order to start receiving money.
- You may need to pay taxes on the money you receive.
Which One Is For You?
To some, waiting to become unable to work before they take action is right for them. But, it is almost always best to plan ahead. Insuring your paychecks and having a proper plan in place will be a saving grace when you aren’t able to work and earn money. Disability Insurance will allow you to customize a policy that will include exactly what you want. You will have the plan in place and ready to be activated if you are ever hurt, sick, or disabled to the point when you can’t work.
It is important to keep in mind that, SSDI is not guaranteed to you and it is very likely that you will be denied the first time you apply. When you become approved, you will still have to wait about 5 months to start receiving any money.
- What will you do in the mean time to support you and your family?
- Do you have enough money in savings to live without SSDI for at least 6 months?
Ready To Help You
Our advisors can help you analyze which plan is right for you: Disability Insurance or Social Security Disability Insurance. Disability Insurance helps protect you and your family from financial issues and can help support your finances when you can’t work.
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