Working long enough at a job to be able eventually to retire and with enough retirement income to live comfortably may be your goal. However, data compiled by the Social Security Administration shows that a quarter of the workforce who are now 20 years old will be unable to work because of a disabling illness or injury before reaching retirement age.
The uncertainty of a disability cutting short your earnings potential may have you thinking about options to replace your paycheck. Benefits through Social Security Disability Insurance for workers with a long enough earnings record and Supplemental Security Income offer two government options. Other options for replacing lost earnings include short-term and long-term disability insurance policies offered as a benefit through an employer or purchased on your own.
As you read through the information provided here about options for providing long-term and short-term disability pay, answers to any questions that you have about disability benefits are available from a Social Security disability benefits lawyer at NY Disability. Contact us before making a decision about disability benefits.
Long-term disability benefits through SSI and SSD
SSD and SSI provide Social Security disability benefits, but your inability to work must be caused by a medically determinable physical or mental impairment expected to last for at least 12 months or result in death. If you qualify for SSI, which requires that you meet income and resource restrictions, the maximum monthly federal benefit for 2022 is $841 for an individual.
An eligible individual with an eligible spouse may receive a maximum monthly benefit of $1,261 through SSI. Some states supplement the federal payment, so speak to an SSI lawyer at NY Disability to find out how much your combined SSD benefits will be.
If you qualify for Social Security disability through the SSD program, the amount that you will receive as monthly benefits depends on your lifetime earnings record. The more money you earn and pay Social Security taxes on, the higher the monthly SSD benefit. There is, however, a maximum monthly benefit limit of $3,345 for 2022. An SSD lawyer at NY Disability can tell you the SSD benefit you are entitled to receive and help you complete an application for SSD benefits through either of the programs available through Social Security.
Short-term and long-term disability insurance policies
Insurance companies offer short-term and long-term disability policies that you can purchase or that may be offered by your employer as a benefit of employment. If you purchase a policy, the cost will depend on the benefit amount and how long you receive them. The more money an insurance company pays out to you in benefits, the more it will charge in premiums for the policy.
Typical short-term policies have benefit periods that are from three to 12 months. Long-term policies, as their name implies, are intended for injuries or illnesses that prevent you from working for an extended time period. Long-term policies may have benefit periods, which is when they pay you benefits, of anywhere from two to 10 years or longer depending on what you choose.
Another factor influencing the cost of a disability insurance policy is the waiting period. A waiting period is the time that must elapse between when you become disabled and the start of the benefit payments under the policy. Generally, policies with shorter waiting periods cost more than do policies with longer waiting periods.
How much do short-term and long-term disability insurance pay?
If you buy a policy directly from an insurance company, you have the ability to choose its terms, including:
- Benefit period
- Waiting period
- Amount paid as benefits
When disability insurance is offered by your employer as one of your benefits, you get the terms that your employer selected. Of course, the fact that you do not pay the premiums for the policy is an advantage with employer-provided disability insurance.
A short-term disability policy generally pays from 70% to 80% of your weekly earnings. Long-term policies usually pay about 60% of the earnings you had while working.
Something to keep in mind about disability insurance is that payments you receive through a policy paid for by your employer must be reported as taxable income to the IRS. The same is not true for benefits that you receive through a disability policy that you pay for without any contribution from your employer.
Learn more about disability options from NY Disability
If you need assistance claiming disability benefits through long-term and short-term disability insurance or through either of the Social Security disability programs, an SSD lawyer at NY Disability has the experience and knowledge to provide you with trusted advice and skilled representation. We handle initial applications for SSD and SSI benefits and experienced representation during the disability appeal process. Contact us today for a free consultation and claim evaluation.