Disability Insurance Articles
Social Security Versus Private Disability Insurance
Private disability insurance is designed to offer greater benefits than employer coverage. According to industry experts, it is also more effective than social security disability income. This is due to a number of reasons, including larger payouts for medical bills, insurance claims, and hospital visits. Disability insurance also allows users to access a range of plans that are specific to their individual needs. There are even some disability insurance programs, which allow recipients to still receive social security benefits. While employer-based coverage is essential, services are terminated once separation occurs. Social security benefits also depend on several factors, including how long a person has worked and age requirements. Disability insurance, however, allows employees to secure coverage by simply making timely monthly payments.
While private disability insurance can run as high as $180 a month, its benefits far outweigh employer-sponsored coverage or social security programs. For one, employer insurance is very rigid and is based on continued service. Once an employee ceases to work for an employer, his or her coverage options are no longer honored. Furthermore, the employee cannot transfer coverage to a new job, since it conflicts with specified employer programs and network contracts. In terms of disability, the employee has to remain with the same company in order to receive benefits. If the disability prevents an employee from returning to work, he or she can even be released as the discretion of the employer. Unlike private insurance, social security disability benefits also have a five-month waiting period. For employees who require immediate coverage due to recent disabilities, this can seem like a lifetime.
Along with social security, disabled employees may also qualify for worker's compensation. They can even apply for certain public disability payment programs. These programs, however, can affect and even reduce social security benefits. Disability claim approvals can also range between three to five months. With private disability insurance, you can secure approval within just a few weeks. If you become disabled, your benefits will be tax-free, so long as your account is current. Since the insurance is not tied into your job, you also have the flexibility to change positions. Depending on your needs, this may be higher or even lower paying positions. For the latter, the "any-occupation" coverage choice is highly recommended. This type of private coverage covers an array of job positions with cost-effective policies and plans. For more intricate and advanced positions, higher premiums may be assessed.
While private disability insurance is certainly expensive, claims can be secured faster than social security insurance. Private insurance also offers greater flexibilities for employees who become disabled. While both programs have benefits, it basically depends on the needs of each employee and their families.