The Jacobs Company
Why Buy Disability Insurance?
One of the biggest misconceptions about being disabled is that Social Security will take care of you. With Social Security, you must be disabled for twelve months before you are even considered to be eligible for benefits. Once considered, 7 out of 10 applicants are initially denied coverage. Even if you are eligible for these benefits, could you survive the six month waiting period? You must also consider whether you could live on the small amount of benefits which Social Security will pay you.
State Disability
Only California, New York, New Jersey, Hawaii and Rhode Island have state sponsored disability programs. These programs are generally short term and have low benefit ceilings. In California, the maximum benefit is $336 per week and will only last 52 weeks. So, these plans may be a way to offset a portion of the economic loss in the short run, but do not come close to meeting the long term disability needs of a moderate to high income earner. You may want to check with your individual state to determine what, if any, benefits are available. Regardless of the state benefits, when planning for your long term financial future, you can all but disregard any state sponsored disability insurance programs.
This document was last modified on July 26, 1999
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