The Pros and Cons of Applying for Disability Benefits Online

Applying for disability benefits has become a growing necessity among Americans, especially for those in the workforce who can't perform work due to a medical condition. Generally, the perception of the whole application process for disability benefits has been somewhat shaky. This is due to the fact that, at least for those who underwent the process, it was overly tedious and stressful to deal with.

But then, the Social Security Administration (SSA), the federal agency that oversees the disability applications of applicants, has made life easier for those hoping to score benefits. With the whole world beholding the age of the Internet, there is no wonder that the SSA would go on that so-called "digital" direction; thus the federal agency's online application option.

The online application dilemma

For persons with disability who are planning to apply for disability benefits, the online option is considered their shortcut. While the purpose of the online application is to make life easier for them, it is often compared with the old-fashioned way of doing it, which is going directly to the nearest local SSA field office and applying for benefits in person.

Questions of the difference between the two options have often been a topic of discussion among those who are planning to apply for benefits. It can, therefore, be said that applying online has its advantages and disadvantages.

The pros...

One definite advantage of applying online is the fact that it is a fast and convenient way of acquiring benefits easier. People living at this day and age have become more savvy when it comes to using the Internet, and doing the application online would be just a piece of cake for them.

Moreover, if applicants are unsure whether or not they are qualified for benefits, they can consult with the Benefit Eligibility Screening Tool. Available in the SSA's website, this tool gives them an opportunity to determine whether they could qualify for benefits under the Social Security disability program.

... and cons

However, disability applicants must know that the whole application process does not absolutely end with the online option. They still need to accomplish certain SSA forms, accumulate valuable medical information, and submit the claim to the local SSA field office. Additionally, the online application is not for everyone, particularly for those convicted of felony, those who do not live in the U.S., and for those who are applying disability benefits for a child.

Consequently, this will always boil down to preferences. Applying online or the old-fashioned way doesn't, in any way, change the applicants' qualification for benefits. To help them weigh these options in case they go undecided, they may consult with any reputable Los Angeles Social Security claim lawyers.

Are You Protected If Injured

If you were injured or became seriously ill, and were no longer able to work, how would you pay your bills? Paying your monthly mortgage payments could be almost impossible. Buying a mortgage disability insurance policy now could compensate for your loss of income by paying some or all of your monthly bills if you become disabled!

If a serious illness or accident prevent you from working, having a mortgage disability insurance policy in place could save your home from foreclosure. To mortgage disability insurance is available for full time employees who have been working for the same business for at least six months. When you have mortgage disability protection, you will be able to put your mind at ease knowing that your mortgage payments are taken care of. If you ever become disabled and are no longer able to work, you won't have to worry about the possibility of losing your home to foreclosure.

Something that may surprise you: approximately one half of all mortgage foreclosures are directly or indirectly caused by some type of disability or handicap. Social security may be an option for you, but you should be aware that social security coverage is very limited and to receive benefits from that program you must be fully disabled. Purchasing mortgage disability insurance will provide more benefits and better coverage and is easier to qualify for.

Employers often times offer disability insurance in their benefits packages. It is important to look closely into that policy and understand the terms and conditions. Be sure that the benefits offered in that policy would be sufficient for you and your family if you became disabled. It may be a better option to get a customized mortgage disability insurance policy from a licensed insurance agent.

Before you decide which policy to purchase, you should talk to a local licensed agent and research what policies you qualify for. Be sure to discuss your cost of living with your agent and remember to include all of your loan payments as well as other expenses to find what percentage of your income would need to be replaced if you ever became unable to work. You should also find out how long the policy will pay out generally this is between six months and one year. No matter the extent of injury or disability; your mortgage disability insurance policy will ensure that you don't lose your home.

Disability Insurance and Why It's Needed

Disability insurance and your career go hand in hand. Building any career calls for the investment of time and money; however, a career built through sheer hard work alone is never safe. A simple accident can end your career, and unfortunately, you will never know when an accident will occur. Accidents can cause both temporary and permanent disability. Reports have shown that at least one of every seven workers will be victim of disability before he is 65 years old. Any form of disability can have disastrous effects on a person's family, as you will be unable to support your family and pay bills at the same time. Not to mention that a disability also comes with its own expenses. Your medical bills may skyrocket and continued expenditures with no additional income can easily deteriorate all of your assets. Have you ever thought of a situation where you'd be unable to provide for your family? There is no reason to worry because you can safeguard your source of income through a disability insurance policy.

Individual disability insurance can cushion you against the financial hardships resulting from a disability. This insurance goes a long way to replace a significant portion of lost income due to sickness or injury. You can use the insurance payments to pay for ongoing bills while you recuperate from the injury or illness. Many people tend to think that medical insurance is sufficient for any health related event; however, that is not the case. Apart from the medical bills that come with an injury or illness, you will also have to continue paying your mortgage, vehicle payments, and other insurance premiums. With disability insurance, you can pay the necessary items needed, but you may also be in a position to save some income for the future. Many people underestimate the chances of becoming disabled, not knowing that they are at great risk. A small monthly or annual payment to a disability insurance plan can prove to be very helpful, as the everyday working environment is filled with potential hazards for disability. Additionally, the modern world is constantly faced with dozens of difficult-to-cure diseases.

Many workers enroll in group disability insurance plans; however, many group plans have uncertainty factors attached and they are not always the best option. Group insurance plans can sometimes be altered or canceled unexpectedly. Also, many times you are unable to take your group insurance plan with you when you change employers. It is also important to note that group insurance has restrictions, such as only being able to use it when you are fully disabled. This can be a huge disadvantage because most forms of disability are known to be partial. Meaning, they do not render you completely disabled even though you may be unable to perform your most vital tasks. In addition to the aforementioned disadvantages, the benefits from group insurance plans are taxable, the terms are sometimes not revised regularly, and they are almost always obsolete in regards to inflation.

Signing up for a disability income insurance policy is the best thing you can do to safeguard your income and protect your family. Keep in mind that there are many different types of disability insurance policies. Some are based on specific careers while others are more general and income based. The most common types of disability insurance include disability insurance for physicians, dentist disability insurance, medical resident, and attorney disability insurance among others. Different professions have different categories and every insurance plan has a set of features and rules. The amount payable every month differs from one policy to another and clients are free to make their choices depending on their level of income and profession. The length of time within which benefits are paid ranges from 2 years to age 67. In any good policy, premiums are waived during the disability period and some plans keep with changes in inflation. That being said, it is always wise to choose the best disability insurance company and policy appropriately for you age, income and financial needs.

Income Replacement For Sick Business Owners

If you are the business owner and you become sick, how are you, or the business for that matter, going to be able to pay for that? Typically, a business owner is needed in their business in order for it to function. When a business owner becomes sick the business suffers. Many business owners never think about this until it is too late. Just like most insurance programs, we cannot buy it after the fact.

Owners typically sit with their accountant, lawyer and people they trust and they work up business plans, goals, and the like to keep their business profitable. On the personal side, they may even do some financial planning and protection with a will or even a trust. Beyond that, the focus is on profits.

There is nothing wrong with focusing on profits. After all, isn't that the reason we all go into business? However, if the owner doesn't plan on protecting the asset they built, they will have a hard time focusing on profits in the event they become seriously ill. The focus will turn to keeping the business afloat until they are better. The unfortunate thing is illness does not discriminate. You could be the next business on the front page of the newspaper talking about closing their doors due to a serious illness.

Planning to protect your family and business in the event a business owner becomes seriously ill isn't that difficult. In fact, with the right insurance agent, the agent will take care of all the details for the business owner and give them a path towards the right amount of protection. Having the right amount of protection, when you need the most, out weighs the time and effort in pursuing this type of protection. It really comes down to the question is it worth the small investment to come out ahead versus ignoring it and possibly going bankrupt personally as well as professionally. Try rebuilding after everything you worked hard for has collapsed after a serious illness. It is not as easy as one may think.

It can be viewed as selfishness if a business owner ignores reviewing this type of coverage for themselves and their businesses in the eyes of their customers, friends and family. It's not the customers, friends or family members fault if the business owner has to make changes to their product or business that they originally liked, such as pricing or benefits of a product, or even close your doors because you are too sick to keep up on happy customers.

A business owner that takes action could be in a position to replace his or her income in the event they are seriously ill. This will give the business the opportunity to replace the owner while they are recovering. Maybe the business owner will decide it's time to retire while the business still continues on without suffering with the loss of their expertise. The important thing here is the business owner can focus on become well again and to customers can still take advantage of a competitive strong business that continues to provide value.

The income replacement can be done with several different insurance products for asset protection, depending on the business and person. Not everyone can qualify, but if you do, it can be emotionally as well as financially rewarding in the event the business owner actually has to use the benefit. Disability insurance can be hard to qualify for a business owner for several reasons. Some life insurance policies have accelerated living benefits attached to the policy at no extra cost. This is a benefit that allows you access to cash when you have a qualifying event. This can be on a Term Life, Whole Life or Universal Life contract, depending on the insurance company. Some of them may allow you to add on a disability rider for benefits up to age 65, for accidents as well as illnesses, or a waiver of premium during the qualifying time period. Not all benefits are attainable or available with all products. Seek professional advice on such products.

Can I Get Both SSDI and SSI Monthly Cash Benefits

If you can't work because of medical disabilities and you need financial help, you may be eligible for cash benefits from the federal government. You could get monthly disability benefits from both the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs. But, each program has very specific eligibility rules. Do you qualify?

Social Security Disability Insurance (SSDI) Work Rule

SSDI is a form of insurance for workers who have paid into Social Security through past jobs. So, if you have worked and paid FICA taxes from your wages, you could be eligible to get SSDI benefits. The catch, however, is that you must have a recent work history.

The work rule if you're 31 years of age or older is you must have accumulated 40 work credits within the past 10 years. That equals to five years of work. This doesn't mean five years in a row. It means your work credits must have been earned within the past 10 years.

Social Security Disability Insurance (SSDI) Medical Rule

If you meet the work rule, then you must medically prove why you can't work. This can be a challenge. If you have a medical condition that has been identified by the Social Security Administration (SSA) as a disability, you won't have a problem getting approved for SSDI benefits. Otherwise, you're going to need medical support from your doctors and a detailed medical history that clearly shows SSA why you can't work.

Your Social Security Disability Insurance (SSDI) Benefit

How much you get in a monthly cash benefit is based upon how much you have earned over the years. Once you get SSDI benefits you can't get an increase even if your condition worsens. That's because you are no longer paying into the Social Security system. The average SSDI monthly cash benefit in 2012 was $1,111.

Supplemental Security Income (SSI) Benefits Have a Needs-Based Rule

SSI is not based on work at all. It is based on need. If you don't have a lot to support you, which SSA calls "resources," and if you don't have much income, you could qualify for SSI monthly cash benefits as long as you can medically prove that you are disabled.

Your Supplemental Security Income (SSI) Benefit

Your cash benefit is calculated from how much you have in income and resources. In 2012, the average cash benefit for one person was $698 a month and $1,048 for married couples.

Getting Both SSI and SSDI

The thing is, SSA counts your SSDI benefit as unearned income. Even if you are eligible for both SSDI and SSI benefits, you won't get the maximum SSI amount if you're also getting SSDI. You'll get a portion of it. That's because SSA subtracts your countable income from your SSI benefit. You may only gain a few extra dollars by getting both benefits.

These federal disability benefits programs are very complicated to understand. But, if you need disability benefits, make it easier on yourself. Find a Social Security Disability advocacy group to help you apply for the cash you qualify for.

What Professionals Need to Do When Filing Disability Claims

Managing the Maze and Winning "The Claim Game" 

This is the third article which presents the conclusion in the 3 part series written over the past several months. The sequence will provide the full scope of long term disability coverage and claim issues that need to be considered.

Article 1: "What's Really at Stake for Professionals Filing Disability Claims?" In article 2 "What Professionals Need to Consider Before Filing a Disability Claim, we presented the scenario of Dr. Wade Sharpe, a cardiologist who had 3 LTD policies when he became disabled with carpal tunnel syndrome, and the issues and decisions he faced before filing his disability claims. In this third and final article "What Professionals Need to Do When Filing Disability Claims" we discuss how Dr. Wade Sharpe assessed the issues and the conclusions he reached on how to proceed to file claims for benefits under his 3 long term disability policies.

How Dr. Sharpe actually got his claims paid:

On the recommendation of a colleague, Dr. Sharpe engaged a disability claims consultant to assist him by clarifying the benefits in his policies, giving him a clear understanding of how each policy defined disability relative to his situation and prospective claims.

Prior to engaging the consultant, Dr. Sharpe was considering modifying his practice and limiting his practice to non-invasive procedures only. The disability claims consultant explained that were he to do that and later become disabled, his disability would be based on his then current activities and income as a non-invasive cardiologist, making it more difficult to qualify for benefits.

The consultant also confirmed that his policies defined "total disability" as the inability to perform the "material and substantial" duties of his occupation as both an invasive and non-invasive cardiologist, and further recommended how to compile documentation confirming that the invasive surgical procedures he performed accounted for almost 80 percent of his income. They took great care to provide comprehensive medical and supportive documentation, clearly delineating that performing procedures was the vast majority of his duties and income, and as such constituted the "substantial and material duties" of his occupation as a cardiologist performing both invasive and non-invasive procedures. As a result, all three (3) claims for "total disability" benefits were approved.

Once Dr. Sharpe understood the definitions and specifically what documentation was needed, he filed his claims, which happily for him, were approved.

What Dr. Sharpe learned and mistakes he avoided:

Dr. Sharpe became upset upon learning that not all three (3) policies provided lifetime benefits as his agent had advised. However, the consultant's detailed policy analysis revealed that two included riders providing lifetime benefits for disabilities commencing prior to age 60.

At 56 when his disability began, Dr. Sharpe was eligible for lifetime benefits on these two (2) policies. The remaining policy also provided lifetime benefits for sickness, provided the disability commenced prior to age 55. So, while the agent's advice was correct when the policies were sold, the specific policy provision, concerning his age at the onset of disability, made him ineligible for lifetime benefits on that one policy.

Contractual details like these often determine the basis for claim payments. Disability claims consultants are professionals with the expertise that can make all the difference.

Had Dr. Sharpe made the mistake of becoming of a non-invasive cardiologist because he lacked an understanding of the specifics of his benefits that the disability claims consultant provided him, he would not have learned when and how best to successfully document his disability claims:

he would never have known his policies should provide benefits for totally disability as a cardiologist doing invasive and non-invasive procedures;

he would not have filed claims when he did,

nor would he have received the benefits he was entitled to.

and once he became a non-invasive cardiologist, any future claims filed for disability would have been based on those duties, making it more difficult to be eligible for benefits.

Continuing With Your Mortgage Payments During Illness

People can be put off by the cost of mortgage protection insurance but this can be made more affordable with a little planning. Especially when tailor made to fit alongside other possible sources of income, such as sick leave, holiday pay and emergency savings.

Mortgage protection insurance differs from a lot of critical illness type covers, in that it is much more comprehensive and does not limit your cover to a specific list of conditions. As a registered financial advisor I think about the following when trying to make premiums for mortgage protection insurance affordable for a family.

1. Payment Term

"Payment term" is the length of time the insurance company will continue to make monthly payments to your family while you are suffering from an illness and unable to work.

Dropping this payment term lowers the insurance premiums. This is only really ideal if you think you will be able to make other arrangements to cope with long term disability. Lower payment terms can be used alongside "total permanent disability" to lower some risk. "Total permanent disability" cover is a type of insurance which will pay out a lump sum in the event that you are unable to ever work again. I tend to quote premiums with the payment term set at retirement age(65).

2. Wait period

If you fall ill and are unable to work; the "wait period" is the amount of time you would have to wait before getting your first payment from the insurance company. Increasing the wait period to thirteen weeks can reduce your premiums drastically.

This can be a good way to reduce costs if you can manage your own financial commitments at the onset of losing an income due to illness. Holidays and sick leave from an employer can help to tie you over while waiting for the initial payment as well any savings. Note - if you have this type of cover make sure you check if your claims will be paid upfront or in arrears, this can mean a difference of one month with some covers.

3. Cover amount

You don't have to cover the full amount of your mortgage if you feel that there will be other family income which will continue in the event of you not being able to work due to illness. Extended families sharing expenses and or couples could consider this as well as those with other investments which generate an income. Also remember that when taking a mortgage repayment insurance, ACC is not offset. Meaning that you are able to claim mortgage protection insurance if you are receiving ACC payments due to an accident.

As each of these components can have a big impact when and if the worst should happen, it is important to discuss these with your financial adviser before putting a plan in place.