If you are faced with an injury that leaves you disabled either, you may think it’s better to lean on the disability benefit your employer offers or those provided by your existing insurance provider. There are, however, a number of advantages to qualifying for Social Security disability benefits.
More Money
Disability benefits from private insurers or employers often continue to pay out at a flat rate indefinitely. That means that the payments, relative to the cost of living, become less valuable over time. Social Security disability payments undergo periodic increases to keep pace with the cost of living and the rate of inflation. The payments increase over time and the value remains stable, rather than sticking to a fixed payment that loses value over the years.
Rehabilitation
Those approved for Social Security disability are also assessed to determine whether or not their disability will improve sufficiently for them to return to work. If vocational rehabilitation proves beneficial, the disability benefits are often left in place for the entire duration of your vocational rehabilitation process. Private insurance policies will not always cover the cost for the full duration of rehabilitation, meaning Social Security disability may be the safest bet for getting you back to work.
Future Benefit Protection
Social Security retirement benefits, as well as benefits for dependents or survivors, are based on the number of years you worked and how much you pay in during that time. If you qualify for Social Security disability, the entire time you receive disability benefits does not diminish that credit. This keeps future benefits consistent with the time you actually work, rather than punishing you for experiencing a disability.
Health Coverage
Maintaining health care coverage is often problematic for those with disabilities. Qualifying for Social Security disability benefits is an important first step in securing long-term health care coverage. Beginning 24 months after you qualify for Social Security Disability, you start receiving Medicare coverage (Parts A and B). Parts A and B cover a range of medical care, including hospital care, lab tests, and preventative care. If your employer offers COBRA disability protections, you can secure up to 29 months worth of coverage. You are permitted to purchase 18 months of coverage at the time you leave a company and, if you qualify for social security disability during those 18 months, you become eligible to purchase another 11 months worth of COBRA coverage. This coverage will assist you until you become eligible for Medicare.
Reduced Tax Burden
If you paid your Social Security premiums from your after-tax income, the monthly disability payment you receive from Social Security is not taxable. If your premium came out of pre-tax income, however, your benefit payment does remain taxable.
Social Security disability provides you with several important advantages. It protects your future benefits, secures your future health coverage, facilitates vocational rehabilitation, and can even reduce your tax burden. Most importantly, it provides you with inflation-adjusted payments to live on.
