WHY SOCIAL SECURITY MAY NOT SAVE YOU
That may not be true.
Social Security may not save your home. You may lose your car. You could become homeless unless you have family or friends to count on. Here's why.
1. Social Security does not pay the first 5 full months of disability (SSDI). 5 months is the mandatory exclusion or "waiting period." You're on your own.
2. It can take months or years to get a Social Security disability claim approved. Very few are approved without an appeal. In fact, very few are approved without at least 2 appeals. I've seen claims drag on for 2 or 3 years with no payment. If you've ever dealt with the government, you understand.
3. You may never get approved for a Social Security disability check. Just because you are not able to work does not necessarily mean that Social Security will pay you.
4. If your disability claim goes well (I mean perfectly), you won't get paid for 6 months. There's the 5-month waiting period that isn't covered. Plus, Social Security plays one month in the arrears. So add another month to get the first check. 6 months minimum.
5. Social Security may not pay you enough to make ends meet. The average Social Security disability benefit is about $1,250 per month. For some families, that doesn't even cover the mortgage.
These are depressing facts--but worth thinking about.
So, what can you do to protect yourself and your family? Here are 3 important things.
1. Buy short-term and long-term disability insurance through your employer if it is offered. These plans usually pay while you wait on Social Security and they pay even if Social Security denies your claim. Many of my clients are surviving financially because they have disability insurance through their former employers. It is absolutely life-saving. And it's usually not expensive. But get it now, while you can.
2. Try to save enough for at least 6 months without income. Figure out what your family budget requires for 6 months, and start saving. Do it a little at a time if necessary. Start a savings plan at your bank or credit union and contribute regularly. Yes, it will hurt at first. But not as much as a sudden loss of all income through disability. Instead of buying a big screen TV or something with your tax refund, think about saving it. Same thing with your stimulus check!
3. If you must file for Social Security disability, get an advocate or attorney professionally involved before your claim gets irrevocably messed up. There comes a point when no attorney can help you. Don't reach that point before you call someone. If you're not ready to hire professional help, at least call someone for some free advice to get pointed in the right direction.
A little planning and effort before-hand can make all the difference when a sudden disability strikes.
IT'S THE THINGS WE DON'T PLAN FOR THAT ARE DISASTROUS.
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