February 05, 2012
/24-7PressRelease/ --
Facing a Disability? Employer Benefits and Social Security May Both Help
Many employers provide a diverse array of benefits to their workers. Health, dental and disability insurance are among the most common types of employer-provided benefits. Since they frequently rely on it, most workers are familiar with health and dental coverage. But, as workers only rarely have to call on disability insurance, it may not be as well-understood as other types of employer-provided coverage.
Yet, even though most workers infrequently use their employer disability coverage, when it is needed, disability insurance can be an extremely important benefit. After becoming disabled, the two most significant sources of income for an incapacitated worker are often employer disability coverage and Social Security Disability Insurance ("SSDI"). Having a basic understanding of the interplay between these two types of disability benefits, along with seeking timely advice from
Texas Social Security Disability lawyers, can prove hugely beneficial for anyone put out of work by a serious health condition.
Differences Between Employer Disability Benefits and SSDI
Although they share many similarities, there are several major distinctions between employer disability coverage and SSDI.
There are many different types of employer-provided disability coverage -- policies may be for long-term disabilities, short-term disabilities, or both. Some employers completely cover the premium costs of disability coverage for their workers, while others offer such policies at discounted group rates to employees.
SSDI, on the other hand, is a government-sponsored program managed by the
U.S. Social Security Administration. Everyone who has contributed enough to SSDI through Social Security taxes (denoted as FICA deductions on most paystubs) is automatically covered. Unlike some employer disability policies, SSDI only covers impairments that prevent you from performing substantial work for a year or more; partial or short-term disabilities are not covered by SSDI.
Complementary Coverages
Employer disability coverage and SSDI are not mutually exclusive; on the contrary, they are often specifically tailored to function interdependently.
SSDI benefits include compensation for your normal pay, Medicare health insurance (after a given period of disability), and, if practicable, vocational rehabilitation or other types of support services that can ultimately help you get back to work. Your employer-provided disability package may overlap or exceed SSDI in terms of health insurance and other benefits, depending on the provisions of your individual plan. In terms of income replacement, however, most employer-provided disability insurance plans are designed to work in tandem with SSDI.
While some employer-provided disability plans provide higher amounts, replacement of 60 percent of your pre-disability income is typical of most policies. Your employer disability coverage makes up the difference between the monetary benefits supplied by SSDI and your policy's income replacement level.
As an example, imagine that your monthly income at the time you became disabled was $4,000. Your employer disability coverage stipulates 60 percent income replacement, which for you would be $2,400 per month. After submitting a successful SSDI claim, it is determined that you qualify for $1,400 a month in Social Security income replacement. Your disability insurer would then provide you with the additional $1,000 per month to bring your total disability payment to $2,400, 60 percent of your pre-disability income.
Challenges Faced By Disability Applicants
Unfortunately, getting the most out of your disability benefits is not always as simple as filling in the gaps between SSDI and your employer-provided insurance coverage percentage. Sometimes, when the Social Security Administration or private benefit providers improperly deny claims or drag their feet,
experienced Social Security Disability attorneys can help you get the benefits you are entitled to.
A 2010 report from the Social Security Administration revealed that approximately three-quarters of SSDI applicants are initially denied benefits. Yet, after appealing, half of those who are originally turned down eventually receive the benefits they need.
An industry study conducted in 2010 showed that group disability insurers are more generous in approving claims than the Social Security Administration: just over 75 percent of long-term disability claims submitted to group disability carriers were approved. Even so, for individuals wrongly denied benefits or offered payments below the threshold provided for in their plan, this is of little consolation.
Advice for Disability Applicants
If you are suffering from a disabling condition, there are several measures you can take to protect your rights to benefits and improve your chances should you need to appeal a denial. Keep original documents outlining your medical condition in a safe place; only submit copies when providing documentation to SSDI or insurance authorities. Carefully review the policy terms of your employer disability coverage.
SSDI and employer disability coverage are meant to help you in your time of need. A disability can be a challenge in many ways -- help ensure that a lack of financial resources is not one of them by contacting an experienced SSDI attorney today.
Article provided by The Law Offices of Coats & Todd
Visit us at
www.getdisability.org---
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