Qualifying for Social Security Disability benefits requires serious injuries. To pursue a claim, you need to gather documents and exercise patience. Unfortunately, even good claims receive denials from the Social Security Administration. This may lead to appealing the decision to get a more favorable response for your case.
If you can no longer work, Social Security Disability might mean the difference between food and the table and a roof over your head versus homelessness. Even so, CNBC estimates that the average benefit amount received amounts to just $14,000 per year or $1,200 per month. How will you fill the gap?
What is disability insurance?
As the name implies, this insurance policy provides financial benefits if you become disabled and can no longer work. It generally comes in two forms: short-term disability or long-term disability insurance. Short-term disability benefits cover up to 70% of your base salary for several months. Long-term disability offers coverage after six months and replaces up to 60% of your income.
Can it replace SSD benefits?
If you suffer from disabilities, you need every last penny you can get your hands on. Your living expenses as someone with disabilities often climb higher than the average person. Additional expenses might include the following:
- Ongoing physical therapy
- Prescription drugs
- Renovations to your home to make it more accessible
That said, disability insurance might work better as a supplement to SSD, instead of a replacement. Another reason not to depend too much on SSD stems from the fact that insurance companies do not always honor policies. Securing benefits under the policy can sometimes prove as difficult as securing SSD benefits, plus the possibility of pursuing litigation.