We all benefit from the existence of public disability benefits like Social Security Disability Insurance, but the reality is that SSI and SSDI often do not fully cover an individual’s needs. In cases where an illness or an injury makes returning to working impossible, programs like private or group disability insurance can offer protection and support even when your job cannot.
What It Covers
Private disability insurance typically replaces 50% to 70% of your income if you are unable to work. Policies vary significantly, but these programs usually cover both physical and mental health conditions, including chronic illness, injury, cancer, and even long COVID. Coverage can be short-term (a few months) or long-term (several years or until retirement). Benefits paid out are often tax-free when you pay premiums with after-tax dollars.
Why You Might Need It
The Social Security Administration estimates that one in four people in their twenties today will experience a disabling condition before reaching retirement age. Without adequate income replacement, many workers risk draining savings, falling behind on bills, or even facing bankruptcy or housing insecurity.
Employer-sponsored disability insurance, or group disability insurance, may also not be a sufficient solution. These plans often offer limited benefits and usually end if you lose your job. A private policy can fill those gaps by offering higher benefit limits, broader coverage, and the security of portable protection.
Potential Risk Factors
As with any solution to the disability insurance dilemma, private disability insurance has its share of risks and downsides. It can be an expensive option, especially for low-income workers, and the costs can rise in relation to your age, job, pre-existing health conditions, and more. Pre-existing conditions can also be treated in some cases as disqualifying factors when being considered for private disability insurance policies.
We’re Here to Help
If you’re considering private disability insurance or if you’ve been denied benefits you’re entitled to, Pandemic Legal is here for you. Our team works to protect the rights of individuals impacted by the coronavirus pandemic. We offer legal support to help you understand your options and move forward with confidence.
Reach out today to learn how we might be able to help you secure coverage and the peace of mind you deserve.