Can My clients rely on Social Security if they become too sick or hurt to work?
Many of your clients believe that if they became too sick or hurt to work they could rely on Social Security disability benefits.
Here are the facts:
- Social Security Disability Insurance (SSDI) is coverage that workers earn. If you paid enough Social Security taxes through your lifetime earnings, SSDI provides support by replacing some of your income if you’re disabled and unable to work. It’s important for your young clients to realize they might not have paid enough in yet.
- The Social Security Act—the law governing SSDI—has a strict definition of disability. An individual is considered disabled if they can’t work due to a serious medical condition that has lasted, or is expected to last, at least one year or result in death. There are no temporary or partial disability benefits
- SSDI payments help disabled workers to meet their basic needs only. The average monthly Social Security disability benefit was $1,280, as of April 2021. Ask your client’s if they could live on that.
- Disability can happen to anyone at any age. Serious medical conditions, such as cancer and mental illness, can affect the young and elderly alike. One in four 20-year-olds will become disabled before retirement age. In conclusion, disability insurance needs to be part of your client’s financial plan.