Tampa, FL (Law Firm Newswire) March 29, 2017 - While the majority of people would consider buying life insurance, few individuals would contemplate purchasing disability insurance. Although Social Security provides some disability insurance, it is restricted.
Social Security disability payments are comparatively small. In 2015, the average monthly disability benefit was just $1,165. But that may be inadequate if it is an individual’s principal source of income.
According to the Social Security Administration (SSA), an individual is disabled if they are unable to work because of a serious medical condition that has afflicted, or is anticipated to afflict, the person for a minimum of one year, or have fatal consequences. It is a requirement that the individual’s medical condition impede their ability to perform work that they previously did, and it has to prevent the person from adapting to other kinds of work.
“Social Security disability, by itself, is insufficient to provide for a person’s retirement,” said noted Social Security disability attorney David W. Magann. “Individuals and their families should explore additional options for supplementing their retirement income.”
Given the perilous state of Social Security, it would be wise not to rely on receiving anything from Social Security one to three decades from now. Since 25 percent of those who are age 20 will suffer a disability prior to attaining retirement age, private disability may be a viable option.
However, one disadvantage of having a plan provided by an employer is that if the employer pays the premiums, the employee will be required to pay taxes on the premiums. But if the employee pays the premiums, the benefits will not be subject to tax. Those who are self-employed can join the Freelancers Union, for which there is no charge to become a member.
Disability insurance policies come with several options. For instance, if a person receives approval for Title II disability benefits, the funds are received after a five-month waiting period following the date on which the person became disabled, possibly longer. For SSI Title XVI, there is no waiting period.
David W. Magann, P.A.
156 W. Robertson St.
Brandon, FL 33511
Call: (813) 657-9175
4012 Gunn Highway #165
Tampa, Florida 33618
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