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Think Social Security Disability Will Be There For You?

By Byron Udell | June 12, 2017

The Trump Administration wants to cut over $70 billion out of Social Security Disability Insurance (SSDI) over the next decade. So if you suddenly became disabled, what are the odds that SSDI will still be there when you need it?

According to a recent article, the Trump administration is advocating cutting $72 billion out of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) over the next 10 years. President Trump’s Budget Director Mick Mulvaney recently announced that the proposed cuts are part of the administration’s $1.74 trillion cuts in social welfare programs.

Presently, roughly 9 million Americans depend on SSDI and SSI to keep from falling through the cracks. The aforementioned article also pointed out that Social Security disability beneficiaries are more than three times as likely to die in a given year, compared with non-disabled people of the same age.

According to The Arc, a non-profit advocacy group for people with disabilities, about 946,000 SSDI beneficiaries could be kicked out of the program, or suddenly become ineligible for benefits. And roughly 2.1 million could lose SSI benefits.

Why are you telling me this? I’m not disabled. How does this affect me?

Nobody ever thinks they will become disabled. Believe it or not, the odds of suffering a disability due to an injury or illness lasting over 90 days is four times greater than dying before age 65. And to add insult to injury, most Americans who are laid up due to a disability only have enough of a savings cushion for about 60 days.

Think about it. Do you have enough in savings to survive a disability for over 30…60…90 days…a year…or the unthinkable – forever? Could you pay your mortgage? Could you pay your bills and utilities? Could you even pay for groceries?

Oh, that’s right. You’re not going ever be disabled, right?

Tell me more about Disability Insurance.

Sometimes called “Income Insurance,” Disability Insurance (DI) is designed help you protect your paycheck. For most people, your ability to earn an income is your family’s most important and valuable asset.

Let’s say you’re a 45-year old male and make $75,000 per year. Over the next two decades or so, you’re projected to earn over three million dollars (counting bonuses and raises) by the time you retire. And for many families, that projected income is the fuel that funds most Americans’ dreams of a worry-free retirement.

But what about my disability insurance at work? Won’t that protect me?

If you think your company’s group coverage will take care of all your needs if you get disabled, you might want to check the fine print. Many employee group plans are simply not designed to cover income replacement.

So let’s get back to where we started. Social Security Disability Insurance, even if the proposed cuts aren’t enacted, doesn’t pay out much and is hard to collect. Just how hard? A recent article said that more than 1.1 million people wait an average 583 days for a hearing to collect SSDI benefits nationwide.

That’s why disability insurance should be one of the core products in every financial portfolio. And unlike other coverage that you may or may not have at work, it can’t be taken away…even if you’re laid off or switch jobs. It’s yours.

If you’d like to learn more about disability insurance, talks to one of our DI specialists at AccuQuote or 800-442-9899. We’re here to help.

We only work with highly rated insurance companies – brand names you trust. You may be able to save money without sacrificing quality and strength.