Many Americans today think nothing of insuring items like their pet or new iphone. When it comes to themselves though, roughly only one third of Americans have insurance on their most valuable asset – their ability to earn a livable income.
Social Security Disability is expected to run out of funds by 2016 which is why Americans are being urged to turn towards private disability insurance coverage instead.
According to the Bureau of Labor Statistics, Social Security Disability assets are declining because there are only 13 Americans working full-time per one worker collecting disability unlike in the 1960’s where there were over 50 Americans working full-time per each worker collecting disability. Studies show that this may be the case because of leniency on who may qualify for disability as well as specialized lawyers focusing strictly on disability claims.
Americans are unsafe when it comes to relying on Social Security Disability Support payments alone which average only about $1130 per month. Their income should be accompanied by a taxpayer financed disability payment as well through a private policy.
Short term disability plans available through employee benefits can bridge the gap but those policies are not portable when the employee moves on to another company. Securing a private policy is the only way to guarantee paycheck protection in the event that you are unable to work for more than 30-90 days.
Stay tuned for more updates on Stoneway Financial’s personal income protection program.