Why Social Security Disability Cannot be Relied Upon

Disability is perhaps the most financially devastating risks any of us face. While lots of people have some kind of life insurance, even if it's only through their employer, the vast majority of Americans are woefully unprepared to meet their financial needs and those of their family if they were suddenly unable to work due to disability. But the risk is very real - and happens more often than most realize. According to the Center for Disability Awareness: 57 percent of working adults report owning no private disability insurance whatsoever. But one in four of today's 20 year-olds will become disabled prior to retirement. Furthermore, while worker's compensation usually protects employees from disabling injuries that occur in the workplace, fully 95 percent of all disability claims are not work related. You are far more likely to become disabled from illness or non-work-related injury than from anything covered by worker's compensation. A lot of them think the government will step in. But the social safety net is quite thin when it comes to disability protection. The federal Social Security Disability Insurance is simply not designed to do anything more than to support only the most permanently and severely disabled, and only provide for their very basic subsistence needs. Social Security disability benefits are also extremely difficult to qualify for. Only about 36 percent of first-time applicants are approved, often after a waiting period of many months. Another 13.8 percent are approved as a result of the appeals process. So the chances are quite high you could be disabled and not qualify for SSI or SSDI benefits at all. There are a number of reasons Social Security may decline an application, but the chief reason for most denials is straightforward: The disability is not severe enough or permanent enough to qualify under SSI and SSDI. While you can generally qualify easily if you are legally blind, any condition other than blindness must be totally disabling and prevent you from engaging in any gainful activity, or expected to result in your death. This is a much narrower definition of disability than you'll find in just about any individual disability income insurance. It is therefore extremely difficult to qualify for SSD or SSDI. They are therefore less likely than a private insurer to actually pay any befits on a given disabling illness or injury. Meanwhile, the application process itself could take months to play out, before you receive a dime in benefits. You could also be denied, of course, if the Social Security Administration believes you acted fraudulently in order to receive a benefit. Other reasons given by the Social Security Administration for claims denial include the failure to cooperate with the claims process, failure to provide requested documentation, and in some cases, the failure to cooperate with the doctor's recommended course of treatment. Plan Ahead For most working Americans, SSDI/SSI is no substitute for a complete and responsible financial plan that addresses all possible eventualities, including both total and permanent disability and shorter-term or less severe disabilities that are enough to prevent you from working to earn an income, but not enough to qualify for SSDI/SSI.  The definition of disability under SSDI/SSI is too narrow, and too many people are declined outright for that protection to be reliable - and benefits are too low to keep up a quality of life for most people accustomed to income from work. To protect your family and quality of life, you probably need disability income insurance, via an individual policy, a group policy via the workplace, or a combination of them. Speak to your agent about getting protection in place for yourself, or, if you are an employer, for your workers.