Winning retirement benefits based on a long enough work duration may offer some security for the future. However, according to data compiled by the Social Security Administration (SSA), a quarter of the present workforce above the age of 20 years will be unable to work before retirement age due to a disabling illness or impairment.
The possibility of a disability rendering you unable to work and earn a living may get you thinking about your future livelihood. However, benefits administered through the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs of the Social Security Administration (SSA) for workers with a long enough earnings record and other qualification criteria may offer some much-needed relief.
Other options for replacing lost earnings include short-term and long-term disability insurance policies offered by your employer or a private insurance company. An experienced and knowledgeable Social Security Disability (SSD) benefits lawyer at Clauson Law can help you clear all doubts and queries related to short-term and long-term disability benefits.
Long-Term Disability Benefits Through SSI And SSDI
To qualify for long-term disability benefits through the SSDI and SSI programs, you must establish that you became unable to work because of a medically determinable physical or mental impairment that has lasted for 12 years or is expected to last for 12 years or result in death. If you qualify for SSI, you are also required to meet the income and resource limitations prescribed by the SSA for the benefits program.
On the other hand, qualifying for SSDI benefits requires you to establish that you have paid sufficient Social Security taxes out of the income earned at a job or through self-employment to qualify for SSDI benefits. The amount you can earn as SSDI benefits depends on your lifetime earnings subject to a maximum of $3,627 for 2023.
Short-Term And Long-Term Disability Insurance Policies
Insurance companies offer short-term and long-term disability policies. They may be offered by your employer, or you may purchase them yourself. When you purchase a policy, its cost will depend on the benefit amount and the duration of the benefits.
Short-term insurance policies offer benefit periods of three to 12 months. On the other hand, long-term policies last for a period of two to 10 years or longer.
How Much Does Short-Term and Long-Term Disability Insurance Pay?
If you buy an insurance policy, you have the autonomy to choose the following terms:
- Benefit period
- Waiting period
- Amount paid as benefits.
However, when it is offered as an employment benefit, the terms will come pre-selected by your employer though you do not have to pay the periodical premiums.
Ordinarily, a short-term disability policy covers 70% to 80% of weekly earnings. On the other hand, long-term policies pay around 60% of the earnings.
What you need to keep in mind about disability insurance is that the benefits payments you receive through a policy paid for by the employer must be reported to the IRS as a part of your income. On the other hand, you do not have any such reporting requirement for benefits received out of a policy without any contribution from your employer.
Contact Clauson Law for A Free Consultation And Case Review.
If you want to apply for long-term or short-term disability benefits, you must speak with an experienced SSD benefits lawyer to understand which policy suits you.
Francis Babet loves pursuing excellence through writing and has a passion for Legal. He currently writes for The Law Firm, a USA Based Law Firm that provides SSD, SSI, SSDI, Personal Injury, and Drugs and Devices. His work has been published on various sites related to Social Security Disability, Supplemental Security Income, and more.