While people in Indiana are healthy they generally do not think about what would happen if they suffered a serious injury or illness. However, in addition to needing medical treatment, which can be both costly and time-consuming, people may not be able to work. This means they will not have an income and serious financial problems could arise. That is why it is important to plan for these potential injuries when people are healthy and able to do so.
People with long-term injuries and illnesses can always apply for Social Security Disability benefits (SSDI), but they have another option as well. People could purchase long-term disability insurance as well.
Differences and similarities between SSDI and long-term disability
While both of these options provide benefits to those with long-term injuries, there are many differences between them as well.
- One is people need to pay premiums to keep the long-term disability insurance in place while it is free to apply for SSDI.
- It can be a much longer and more complicated process to receive SSDI compared to long-term disability. Both have definitions for what is considered a disability, but applying for SSDI has many layers during their application process, which do not exist for those making a claim to their own long-term disability insurance.
- Long-term disability will typically pay about 60% of one’s monthly income whereas SSDI pays a percentage of the income, but there is a maximum it will pay out.
People can choose to have one or the other, but long-term disability insurance has benefits over simply applying for SSDI after being injured. Also, long-term disability insurance and SSDI can be used together to provide even more benefits.
Planning for potential disabilities is important for people in Indiana. It is not something people hope will happen, but life is unpredictable and injuries and illnesses can occur suddenly. Having long-term disability insurance is important to ensure that people are able to receive benefits in a timely fashion. It can also be used with SSDI to allow people to receive adequate benefits to meet their needs. Experienced attorneys understand how to maximize benefits through both options and may be a useful resource.