Some residents in Ohio rely on benefits such as Social Security Disability or SSD in the event that they suffer an injury or illness that prevents them from working. While SSD provides much needed financial compensation to those suffering disabling injuries, there are strict requirements that must be met. On the other hand, if you purchase private disability insurance, you have more benefits and options available to you. Learn more about these types of disability insurance and how they can protect you in the event of a serious accident or medical condition.
More than eight million Americans rely on SSD as a main source of income. SSD, however, is an all or nothing situation. You must suffer from total disability for at least one year. If you are partially disabled or expected to go back to work within six months, for example, then you do not qualify.
In addition, you must have worked for a certain period of time in order to qualify. Generally, the Social Security Administration requires 40 work credits, with one credit equal to $1,200 in wages, and a maximum of four credits earned per year. So you will have needed to work a minimum of 10 years, but there are exceptions if you are a young worker.
Private disability insurance, on the other hand, does not require total disability. If you are disabled enough that you cannot perform your job's essential duties, or are disabled for only a short period of time, then you likely qualify. Another advantage is that you could receive up to 70 percent of your salary, whereas SSD benefits cap at $2,642 monthly. Many employees receive this type of disability coverage through their employer, but if your company doesn't offer it, then you will have to pay for it out of pocket.
Another advantage? You can receive multiple benefit payments if you become disabled, so you don't have to choose one or the other. Learn how to make the right decisions based on your situation by seeking guidance about your options and rights.
Source: FindLaw, "Private Disability Insurance vs. SSDI," accessed Jan. 11, 2015
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