Step 3 is where we get into “the meat” of disability finance:

• Employer sick pay
• State benefits
• Disability insurance benefits
• Workers comp
• SSDI/SSI

Employer sick pay, or sick leave, may be generous in one industry, lean in another. At a small company, nothing may be available other than wishes for good luck. Some large and even mid-size companies offer long-term disability policies. Where ever you work, you should learn the specifics of the policy because it may be your first line of defense, even if it runs out long before a health problem is resolved.

According to the Insurance Information Institute, “In some states, such as Hawaii, New Jersey, New York and Rhode Island, state law requires employers to provide disability benefits for up to 26 weeks.” (Don’t confuse this with workers compensation.)

Over at CostHelper.com, we see that “Disability insurance provides income to help pay your living expenses if you are unable to work for a significant length of time because of injury or illness. Generally benefit payments are 60 percent of your total salary.”

The CDA page explains that “[d]isability insurance can be an invaluable lifeline for disabled workers and their families:

• If your employer offers disability insurance make sure you fully understand what benefits are available to you and how your company’s disability insurance program works.
• If disability insurance is NOT provided by your employer, it can be purchased individually at affordable rates. Contact your insurance agent for more information.
• Self-employed individuals can also benefit greatly by having disability insurance. Consult your financial advisor or insurance agent for assistance.”

The CostHelper.com page says to “[e]xpect to pay between 1 percent and 3 percent of your annual salary for a good disability plan, according to DisabilityQuotes.com. That works out to $600-$1,800 for someone earning $60,000 a year.”

Earlier, we cautioned not to confuse state disability benefits (if available) with workers comp benefits. In the usual sense, workers comp addresses workers who are injured on the job. However, if work-related, an illness and subsequent disability may be covered by workers comp, too. As the CDA page says, “After a short waiting period, workers’ compensation generally pays a portion of your former wages or salary. Benefits vary significantly by state and are restricted to a specific maximum and minimum amount.” Here’s a link to programs in each state.

As mentioned in our preceding post, SSDI is a form of  federal “insurance” that workers qualify for by having paid enough funds into Social Security (from paychecks) by working long enough at jobs with employers who make the payments (including self-employed). Here’s the link to the main disability information page of the SSA, including topics such as basic program information, who is eligible, how to apply and so forth.

In your planning, count on at least a six-month wait before receiving SSDI payments.

SSI is not funded by paycheck contributions but by general tax revenue; it provides cash to meet basic needs for food, clothing, and shelter. The program is designed to help aged, blind, and disabled people, who have little or no income and few resources.

Here is a link to the SSA’s page outlining eligibility requirements for SSI.

Here’s the bracing news: If you don’t have access to any of the preceding resources, you’re pretty much left to your own devices and social-family network. For the “average” long-term disability, you’ll need to cobble together some method to make it for 2 1/2 years.

The first fallback position is personal savings. Then you’re looking at such drastic measures as using credit cards, dipping into a mortgage or retirement funds. Here’s how the CDA page lays it out:

• “Personal savings
  A small percentage of Americans are lucky enough to have savings, investments or other financial resources that can supplement or replace their income during a prolonged disability. The rest of us, unfortunately, are not so lucky. Any disability, especially one lasting more than 90 days, would quickly drain our savings. After all, Americans’ savings rate is at an all-time low. A full 1/3 of Americans have no retirement savings and no pension, according to the Social Security Administration. Talk about stress!
• “Last Resort” income sources
  If all else fails, you can begin paying expenses with credit cards, get a second mortgage, take out a home equity line of credit, withdraw money from your retirement plan, and ask family and friends for assistance.”

As you can see, maintaining one’s health is the best option. Of course, no one can do that indefinitely, so financial planning is the next priority. If you’re still healthy, look for ways to promote an even healthier lifestyle. Then, begin your financial planning process.

If you or a loved one needs disability help now, you can use the links provided to contact SSA officials or advocates and disability attorneys.

The acronyms SSDI and SSI refer to the most well known programs that help people who develop long term disabilities. Both are administered by the Social Security Administration (SSA), and each is notorious for being cumbersome, slow, and difficult for the average person to deal with–which is why many who need disability help turn to professional advocates and attorneys who specialize in the field.

SSDI = Social Security Disability Insurance, which pays benefits to workers (and some family members) who qualify; the basic qualification to receive these insurance payments is that you have:

1. worked long enough to have paid
2. enough Social Security taxes through payday deductions

to fund your “insurance account.” In other words, if your work history comprises jobs that did not pay–or pay enough–into Social Security, in most cases you won’t qualify for SSDI.

In that case, however, you may qualify for SSI, which stands for Supplemental Security Income–this program is not based on payments made from jobs but does award benefits based on financial need.

Together these two programs account for the bulk of what most of us consider the disability program for Americans. However, as mentioned, jumping through the hoops can be maddening, and the built-in delays can result in a payments arriving so slowly that the claimant has already died.

For a quick example of how slow the SSA acts, have a gander at its disability front page. As of post time, you can look to the top, upper right of the page and see a link to a press release with the following headline:

Social Security Administration Attacks Disability Backlog

Which sounds like a good thing, right? Well, it is–always good to catch up on a backlog.

But notice the dateline  ===> Tuesday, October 9 , 2007

Shoot, we have more recent, more accurate info right here, toward the end of a May 2010 post in which we discuss delay issues among the various states.

That being said, SSI/SSDI remain the most publicly known disability programs. But they’re not the only alternative.

The Council for Disability Awareness (CDA) is a nonprofit organization that says its purpose is to inform and educate “the American public about the widespread and growing frequency of disability, and the financial impact it can have.”

However, judging from its “members page,” one might infer the group has an interest in selling disability insurance. That being said, however, the Web site does indeed offer a wealth of information.

For one thing, here’s a page about “reducing your chances” of becoming disabled. Pretty standard stuff: wellness tips such as “quit smoking, get regular checkups,” and so forth. Of course, most people don’t think about disability until a family member or they themselves become disabled.

But the statistics suggest that all adults should be aware of at least the basics of disability. For instance, it seems to be a common misperception that “events” cause most disabilities: a car wreck, an accident at work or home, etc..

But according to CDA, which claims to base its figures on the latest available census data and on info from the Centers for Disease Control, the most common causes of disability are injuries or accidents but rather:

Oddly enough, this CDA page is quite contradictory, both in overall tone and in these specific statements (emphasis added):

• “It strikes like a bolt from the blue: unwanted, unexpected, unwelcome. Unfortunately, many of us are totally unprepared for the financial hit that disability can bring.
• “Most Americans live paycheck to paycheck. There’s little or no money left for unexpected emergencies like an injury or illness – the primary causes of disability.

Perhaps the intention was to say something like, “unless you injured in an accident or taken with sudden illness, disability can creep up on you, until there’s a sudden realization that your condition leaves you in financial peril.”

At any rate, the CDA’s suggestions are sound as far as how to think about finances in the event of a disability, including:

Step 1 is, basically, preparing a budget. (The page has a link to a “calculator” routine.)

Step 2 is to, as may be expected, isolate and trim unnecessary expenses.

Step 3 is where we get into “the meat” of disability finance:

• Employer sick pay
• State benefits
• Disability insurance benefits
• Workers comp
• SSDI/SSI

That is where we will continue the discussion in Part 2.

She made it to the cousin’s ceremony but died early April 27–and still had never seen even one disability check for the Stage IV small-cell lung cancer diagnosed in May 2009.

First check was expected this month

According to the online version of Foster’s Daily Democrat, Russell “was supposed to see her first disability check [in late May], at the end of the mandatory five-month waiting period disability insurance recipients have to endure. An agency spokesperson has said the delay is to ensure aid is going to people who are truly disabled. There is a bill in Congress to abolish the waiting period.”

Unfortunately, Russell’s case is more the rule than an exception. The SSI/SSDI process is notorious nationwide for the backlog of cases, even in regions that have shown improvement.  According to an April 19 report in the Fort Worth Star-Telegram, North Texans are waiting about two months less for hearings than they were a year ago, an improvement related to “a plan launched last year [that] has helped speed turnaround. The agency hired 147 administrative law judges, who hear appeal cases, and 1,000 support staff in fiscal 2009, according to the agency.” More hiring is planned for this year, according to SSA.

National rate improving, but still tedious

Nationwide the 2008 backlog of 750,000 cases required a national average wait-time of 514 days, according to the S-T, down this year to 697,437 cases requiring an average 442 days, although some areas still experience delays of well over 600 days.

The article also succinctly summarizes the cruelty of the trap so often faced by those in the queue: “While they wait, applicants get no medical benefits or financial assistance. If they find temporary work to make ends meet until they get a ruling, they risk having their claim denied because they are considered employed.”

White powder and threats of violence

In three recent, apparently unrelated cases, judges have handed down two prison sentences to men convicted of terroristic behavior toward the SSA. Two of the men, one of whom was to be arraigned on May 7,  mailed letters containing talcum, or baby powder, to various agency offices, intending to mimic the post-9/11 anthrax scare.

According to a May 3 report in the Las Vegas Sun, “A convicted felon who made threatening telephone calls to several Social Security offices after his benefits were terminated was sentenced Friday to 46 months in prison and three years of supervised release, Nevada’s U.S. Attorney Daniel Bogden said today.”

Described as a 54-year-old “whose address is unknown to authorities,” Leon Muhammad “was sentenced by U.S. District Judge Roger Hunt. Muhammad, who was arrested on Dec. 17 in Columbia, S.C., pleaded guilty on March 31 to making threatening communications in interstate commerce. He was sentenced at the top of the available sentencing range because he had two prior violent felony convictions in New York and New Jersey and was determined to be a career offender.”

Man had, then lost, benefits

Muhammad was said to have begun receiving benefits in 2005, but in November 2009 SSA dropped him. “Between Nov. 20 and Dec. 3, Muhammad made several threatening telephone calls from Las Vegas to Social Security call service centers in Baltimore, Salinas, Calif., and Auburn, Wash., in an attempt to secure the reinstatement of his benefits. At one point, Muhammad told a representative that if he did not receive payment in his bank account by a set time later that day, he would go to the Social Security office in Las Vegas, where he was vacationing, and create another ‘Valentine Blood Bath.’ ”

A few weeks earlier, a district judge in Alabama, according to an April 21 piece at al.com, “sentenced a Haleyville man to seven months in prison for mailing a letter containing white powder and photos of the 9/11 attacks to the Social Security Administration in Cullman.

“U.S. District Judge Karon Bowdre also sentenced Patrick Bryant Wilson, 41, to three years of supervised release, including seven months of home confinement.”

The deal was part of plea agreement reached in December. According to the defense attorney, Wilson was hurt on the job where he was a a regional manager and subsequently lost the job. He applied for benefits and was denied.

He used his home address

According to the plea agreement, says the article, Wilson “dropped off a letter Aug. 25 at the Cullman post office that was addressed to the Social Security Administration and listed Wilson’s home as the return address, according to his plea agreement. A postal worker noticed it was leaking a white powder, which was later determined to be baby powder. The letter also included two photos of the Twin Towers burning.”

In California, Timothy Cloud not only sent threatening letters to SSA offices but also addressed one to the president at the White House. Moreover, he had a “Plan B,” as explained by this piece in The Sacramento Bee:

“So far, Timothy Cloud’s seems to be working out for him. . . .

” ‘I mailed the envelopes … to those addresses because I hoped people would think it was anthrax,’ he wrote [in a statement to federal agents]. ‘I mailed the letters because I was mad. I knew I would be caught.

” ‘I do not regret sending the envelopes because that was my retirement plan. Either I was going to get Social Security or I was going to jail.’

Cloud is described as a 62-year-old homeless man with a record as a sex offender. Apparently well known on the streets, he seemed to be going about his hand-to-mouth routine when agents finally caught up with him.

‘Three hots and a cot’

His attorney, whom Cloud was initially reluctant to accept, was quoted as saying: “All he wanted was three hots and a cot,” said his attorney, Assistant Federal Defender Matthew Bockmon. “He was frustrated with Social Security over denial of benefits to which he feels entitled.

“This is a pathetic case of a homeless person making a desperate cry for help. He’s been on the streets a long time; long enough that he was sick of it.”

If you receive Supplemental Security Income (SSI) and you get Medicare, your state may pay your Medicare premiums if you have low income and few resources. In some cases, your state may also pay Medicare expenses like deductibles and coinsurance.

Only your state will know if you are qualified. Your state or local welfare office or Medicaid agency can tell you whether you are qualified to receive these benefits.

You also may be able to get extra help paying for the annual deductibles, monthly premiums and prescription co-payments related to the Medicare prescription drug program (Part D). You may qualify for extra help if you have limited income (tied to the federal poverty level) and limited resources. These income and resource limits change each year and are not the same as the SSI income and resource limits. You can contact Social Security for the current numbers.

If you have both Medicaid with prescription drug coverage and Medicare, Medicare and SSI, or if your state pays for your Medicare premiums, you automatically will get this extra help. You will not need to apply for it.

As you can see, there is a worthwhile monthly cash benefit that you will receive if you qualify for Supplemental Security Income (SSI). In addition, there are the additional benefits listed above that you may qualify for because you are receiving Supplemental Security Income (SSI). It is certainly worth the time and effort to apply for SSI.

You may have applied and been denied for Supplemental Security Income (SSI). What can you do now? What options are open to you?

If you decide to appeal the denial by the Social Security Administration, you are probably going to need the help and advice of a good disability attorney. People who have an experienced disability lawyer are approved more often than those without an attorney.

SocialSecurityHome.com is the Web site where you can get in touch with a disability lawyer who can help you get the Supplemental Security Income (SSI) benefits that you are entitled to.

Appealing the denial by the Social Security Administration can be a long and trying process. The disability attorney at SocialSecurityHome.com can counsel and assist you in your efforts to win your claim.

Do not put this off. Do not wait or delay. This is something that is vitally important to you and your future. Contact the disability lawyer at SocialSecurityHome.com, today.

If this is true, you may need help. You may need financial assistance.

Have you applied for Social Security disability benefits or disability benefits for your child with disability from the Social Security Administration because of the disability caused by separation anxiety disorder? Was your child with disability denied?

If you appeal the denial by the Social Security Administration, remember this. People who are represented by a caring disability attorney like the one at socialsecurityhome.com in the appeals procedure are approved more often than those people who are not represented by a lawyer.

There is a difference between separation anxiety and separation anxiety disorder. Separation anxiety is a normal stage of development for secure, healthy babies.

It usually involves crying and distress when the baby is separated from parents or home. With the passage of time, however, the child learns to feel safe in a new environment. The child feels secure that a parent will return. Gradually the separation anxiety fades away.

On the other hand, separation anxiety disorder is excessive, age-inappropriate fear of being separated from family members. This is particularly true of being separated from parents.

Children with separation anxiety disorder are afraid of being lost to their families. Or, they are sure something bad will happen to their family members if they are separated from them. Separation anxiety disorder can inhibit or restrict a child’s normal activities to a significant degree.

Separation anxiety disorder usually begins in children who are of school age. It affects about 4% of children 6-12 and a slightly lower proportion of adolescents. Separation anxiety disorder affects girls and boys about the same

The causes of separation anxiety disorder can involve a traumatic experience a child has gone through. These are things like

§  A scary event (tornado, earthquake)

§  A serious separation (parent in the military)

§  A big change (starting a new school, birth of brother or sister)

§  Stress in the family (coming divorce, serious illness or death of family member or pet)

§  Sickness (major or minor).

The main sign or symptom of separation anxiety disorder is fear that is exaggerated out of proportion to real problems or situations. Other signs and symptoms can be physical or behavioral such as:

• Headaches or stomachaches when they come persistently before separation from parents
• Following parents around the house, not wanting them to be out of sight
• Asking to sleep in bed with parents at night
• Nightmares of parents leaving or being gone
• Excessive worry or panic at the experience or anticipation of being away from home
• Refusing to go to school or other activities away from home
• Excessive worry about their own safety or that of members of the family.

Supplemental Security Income or SSI is a social security disability benefit given to certain qualifying individuals including: the aged, blind and disabled who meet certain income and resource levels. Income and resource levels change each year and can be found on the Social Security Administration’s website.  Supplemental Security Income is given to these individuals for clothing, housing and food expenses.

The federal government funds Supplemental Security Income through general tax revenues not the Social Security Trust Fund.  The federal government treats Supplemental Security Income as a public welfare benefit similar to food stamps and does not consider Supplemental Security Income or SSI to be income for the purposes of child support payments. Therefore, the federal government does not allow Supplemental Security Income benefits to be garnished.

In contrast, Social Security Disability Insurance or SSDI was money paid into the Social Security Trust Fund through employment taxes based on a percentage of the employee’s earnings. The goal of the Social Security Trust Fund is to allow for the replacement of income for certain employees who become disabled and are unable to work.

According to the federal government, the Social Security Disability Income or SSDI benefit is considered a substitute for lost wages and is eligible to be garnished for child support payments. One benefit of Social Security Disability Insurance, however, is children of qualifying disabled workers who receive Social Security Disability Insurance payments may be eligible to receive Social Security Disability Insurance or SSDI benefits until a certain age (18 under most circumstances) and these SSDI payments may be subtracted from the child support amount owed. 

If you have questions regarding your Social Security Disability benefit or the garnishment of you Social Security Disability benefits to pay for child support, it is important to contact a Social Security Disability Attorney who can answer all of your questions. Social Security Disability Attorneys can also answer questions about applying for Social Security Disability Benefits or help you recover any Social Security Disability Insurance or Supplemental Security Income benefits you may have lost.

What do you do now? What other steps can you take? What other options do you have open to you?

One of your best options may be to apply for Social Security Supplemental Security Income (SSI).  It is a federal income supplement program. Although the Social Security Administration manages Supplemental Security Income (SSI), the funds come from general tax revenues, not Social Security taxes.

The Supplemental Security Income (SSI) program is designed to help aged, blind and disabled people with little or no income. It provides cash to meet the basic needs of food, clothing and shelter.

While you may not have worked enough to qualify for Social Security disability benefits (SSD), you may qualify for Supplemental Security Income (SSI). With SSI there are no work requirements that you have to meet.

One of the good things about Supplemental Security Income is that the Social Security Administration does not count all of your income when it decides whether you qualify for SSI. For example, the Social Security Administration does not count:

•          The first $20 a month of most income you receive;
•          The first $65 a month you earn from working and half the amount over $65;
•          Food stamps;
•          Shelter you get from private nonprofit organizations;
•          Most home energy assistance.

You may ask, “Is it worth it? What are the benefits available to me through Supplemental Security Income (SSI)?

The first benefit that you will receive if you are approved for Supplemental Security Income (SSI) is your monthly cash benefit. The monthly benefit for an individual is $674. A qualifying couple receives $1,011 a month.

In addition, if you qualify for SSI, you also may be able to get help from your state or county. You will need to check with the state and county that you live in to see what other benefits are available because you qualify for Supplemental Security Income.

For example, you may be able to get Medicaid, food stamps or other social services. Your will need to call your local social services department or public welfare office for information about the services that are available to you in the community where you live.

If everyone in the home where you live signs up for SSI or gets SSI, Social Security will help you fill out the application for food stamps. If you live in a home where not everyone signs up for SSI or gets SSI, you will have to go to your local food stamp office to apply for food stamps.

Disability benefits from the Social Security Administration will not cover short term disabilities. To qualify for Social Security disability benefits or Supplemental Security Income (SSI), a person must have a condition that results in permanent or long-term issues that make it impossible for them to work.

In most cases it is left up to the employee to obtain coverage for a temporary disability. However, temporary disability benefits are available in five states, the territory of Puerto Rico and for railroad industry workers nationwide. Rhode Island, California, New York, New Jersey and Hawaii are the only states in the country to offer a temporary disability benefit.

The administration of the benefits varies by state, but most of the programs are run through the states unemployment offices. The railroad workers plan is managed by the federal government. The benefits provide coverage for persons with a minimum amount of work history who are temporarily unable to work as a result of an illness or injury that was not the result of a job-related cause that would qualify them for workers’ compensation.

Benefits are based on the claimant’s past earnings history. The longest a person can collect the temporary disability payments varies from 26 to 52 weeks.

Consulting an attorney experienced in Social Security disability applications early in the process can help you sort through the process.

An disability application submitted to the Social Security Administration will result in the applicant being considered for Social Security disability insurance benefits (SSDI) and Supplemental Security Income (SSI).

Dealing with a disability can be trying for the disabled person and their loved ones. Getting the help of an experienced disability lawyer can help lessen some of the stress of dealing with a Social Security disability application.

Other reasons your Supplemental Security Income Benefits could be suspended or denied include:

• If you are a fugitive felon
• If you are sent to prison
• If you intentionally lower their resources or income to qualify for Supplemental Security Income benefits.
• Non-United States Citizens (Certain exceptions may apply-contact the SSA for more information)
• If you leave the United States for a full 30 consecutive days may have their benefits suspended.

Definition for Supplemental Security Income Benefits:

Supplemental Security Income benefits or the SSI program is a disability program which will provide individuals with monthly supplemental income payments. This Supplemental Security Income benefit program is different than the Social Security Disability Insurance program because an individual does not have to have worked and accumulated “work credits”. To qualify for Supplemental Security Income (SSI) an individual must have limited income and resources. The income and resource amount allowed is determined by the federal government. You also must be: age sixty-five or older, or partially or totally blind or have a medical condition that will not allow you to work for at least twelve months or result in death. The method used to determine an individual’s disability is similar for both the Supplemental Security Income and Social Security Disability Insurance programs.

If you qualify for Supplemental Security Income benefits the base supplemental payment amount in 2009 per individual is $674 and the standard supplemental payment amount is $1,011 per couple. Certain states may add additional supplemental payments onto the basic federal standard amount. Certain other payments as well as your living arrangements could also affect the Supplemental Security Income payments you may be eligible to receive.