Did you know that one in eight American workers between the ages of 35 and 65 will have a disability lasting five years or longer? The average Social Security benefit is $1200 per month and the maximum benefit paid by Social Security is set for 2019 at $3,770 per month but that is significantly higher than the maximum benefits in the past. The maximum is regardless of a person's income even those in excess of $100,000 per year.
Another two statistics are that only about 30% of Social Security Disability claims that are approved automatically AND that some people have been waiting in excess of five years for court hearings to settle their claims.
While having employer plans for short term and long term disability plans can be of help in paying bills during the process of applying for and receiving Government disability the fine print on those policies are not always as helpful as people think. Many employer plans have waiting periods between short term and long term disability, mine was six months. And my plan required forms from my doctors to fill out at every appointment in order to keep the payments continuing with a maximum coverage of two years. The hassle was not worth the copays, gas and the time spent chasing forms around the city... at least in my case. My employer plan only paid the difference between my Social Security Disability income and what 50% of my work income plan paid, $85 a month in my situation.
These facts are not true for all situations as everyone's plans and situations will differ from mine but it is important to look into the plans more carefully BEFORE they are needed should you become one of that 12.5% of Americans in need of disability. This thread / discussion is also being raised to support the need for a solid emergency fund, maybe beyond the three to six months that the experts recommend.
Any PH Community Members with additional statistics or experiences to share in this thread? Please comment so we can all learn from each other.