In United States, there are more than 100 million working Personnel. But they have no disability coverage other than SDI (Social Security Disability Insurance). However, Millennial who are now the largest part of the workforce are facing most risk. Now-days they have less disability coverage offered through their office or even private insurance providers. But most of them are not aware of long-term disability insurance, protecting Financial Future, flashed from a recent insurance industry study.
Moreover, 25% twenty years teenager will become disabled before they retire (Source: Council for Disability Awareness). So, many boomers are experiencing firsthand though that’s the reality. Approximately 75% of all individuals receiving SDI benefits now-a-days are 50 years old and extend to full retirement age (according to the Social Security Administration).
There is age difference as well as time situation between millennial and boomers. Though there are several practical steps where millennial can take to ensure that they are prepared, they should experience a disability.
Know about SDI eligibility
There are some eligibility rules for SDI benefits. For example, it’s insurance must have worked and after paid into Social Security. It will be counted via payroll taxes for five of the last 10 years in order to qualify.
Disability have to show before reaching full retirement age for anyone born in 1960 or even later. Also, they have to meet the definition of disability and if they are unable to work because of a mental or sometimes physical disability that has or even is expected to last for at least 12 months or lasting until death.
Understand benefits of SDI
In previous year, the workers who are eligible received an average monthly SDI income of $1,166. Over 50% beneficiaries receive $700 to $1,400 monthly. Social Security Disability Insurance income does not replace a full-time wage. However, it’s an important safety net for over ten million workers and also their dependents who rely on it.
Return-to-work incentives are also available to SDI recipients. It is particularly important for younger workers. SDI also includes provisions to shield a person’s upcoming retirement benefits.
Apply for getting SDI benefits as early as possible
Social Security Disability Insurance or SDI application process can be confusing as well as time consuming. From average people who apply are primarily denied. Everyone should face a national backlog of more than one million claims.
Employer-provided long-term disability coverage
Eligibility for employer-provided or long-term disability coverage are initially low. Most policies have provisions where it is important to require individuals to also seek SDI. So, it is important to understand their SDI eligibility requirements as well as benefits for their private coverage.
We in the company believe that this information is extremely important will be useful not only for US citizens and residents.