Will Social Security And Workers Compensation Protect Your Income?
Hi, this is Matthew Kreider, insurance advisor with Petschauer Insurance. I hope you and your family are safe and healthy in light of the new world we find ourselves in with COVID-19. Our team here at Petschauer is safe, we continue to work from home. So we’re here if you need us. In continuation of our income protection series, last month we discussed the most common disability benefits provided through your employer and shed light on the fact that most employers don’t even provide a long term disability. So it’s all too common for households to rely entirely on workers’ compensation and social security to protect their income. So today I’m going to share with you why you should not rely on these state mandated programs as the only source of income protection for you and your family. Let’s start with workers’ compensation. Workers’ comp is a state funded insurance program that will replace a portion of your income should you suffer a work related injury or illness.
Three major limitations to this benefit. One, is highly unlikely you would qualify for the benefits should you be to disabled due to the fact that only 1% of all disabilities are work related. Two, the benefit is capped, which means your income is likely to be reduced. And three, if you’re a business owner or independent contractor, you may not even be covered.
Moving onto social security. Social security disability is a payroll tax funded federal program. Three major limitations to this benefit. Number one, unlikely you’ll qualify for the benefit due to the fact that social security’s definition of disability is so strict, only a third of all applicants actually qualify. Two, if you qualify, the benefit is significantly limited, average payouts, only $1,200 a month. Three, we see significant delays in receiving the benefit. In some cases it can take over a year before you receive your first paycheck. So in short, you should not rely on these programs to protect your future income, which for most of us is our biggest asset. So what should you do? Take control of your financial security, give us a call. We’ll help you understand how to properly protect your income to protect you and your family. I hope this video was helpful. Stay safe, and be well.
