Differences Between SSDI and Private Disability Insurance

When faced with disability, an individual may have certain difficult decisions to make. These decisions include medical treatment options available to them, whether or not they will be able to work and pursue employment the same way as they did, and what their options are when it comes to paying bills, including for food and medicine.

Medical insurance provides coverage for medical expenses, but like most insurance, terms, conditions and requirements must be met before the assistance can be utilized.

Social Security Disability Insurance

Social Security Disability Insurance , or SSDI is a federally-run program that provides financial aid to individuals affected by disability such that they lose their ability to work for a living. However, because of the high volume of claims made for SSDI benefits, the application process and approval of claims is lengthy and detail-oriented. There is a list of disabilities that are allowed SSDI benefits, apart from other documentation, which includes providing medical proof of the disability.

Private Disability Insurance

Disability insurance is drawn out of an individual’s income to create a fund to help him or her tide over the impairment to work. Disability insurance covers short term disability benefits as well as long term. Private disability insurance may be purchased by individuals to help assist them if the need ever arises, and it may provide coverage by itself or supplement other insurance plans, such as those provided by employers.

What Are The Differences Between SSDI And Private Disability Insurance?

Here are some differences listed out:

    • Proving Disability

Social Security Disability Insurance has a stringent application process that requires applicants to provide proof of disability. Once documents, including medical reports, are submitted they are reviewed for authenticity and the date of disability established before there may be signs of the approval.

Private disability insurance has no such requirements and may be disbursed without proof of disability.

    • Receipt of Disbursement or Benefits

SSDI provides financial assistance after disability is proven. However, there may be a gap between the application process and the time taken to actually receive disbursement. Applicants have the option of appealing if their claims are rejected, but there is no guarantee of approval until it takes place.

Private insurance claims too may not be speedy or paid immediately upon application. But the delays are not dependent on the disability status.

    • Coverage Options

SSDI does not provide options; an applicant may either be approved or rejected. The key consideration in SSDI approval is that the individual is no longer able to pursue the employment option they held prior to becoming disabled.

In the case of private disability insurance, there are several options in the form of short and long-term coverage, including the possibility of the individual not being able to return to work at all.

    • Volume of Assistance

Social Security Disability Insurance benefits come with a cap or maximum limit in terms of the financial assistance provided. This cannot be exceeded. SSDI is also paid out of taxes paid by the individual and as a result, are dependent on the average earnings of that individual.

Private disability insurance may allow a disabled individual to earn more. Some types of insurance policies may provide up to 70% of an individual’s salary.

Getting Professional Help Works Best

Regardless of the benefits and differences provided by both kinds of insurance, having a professional, such as a social security disability lawyer by their side, can make a significant difference to an individual’s chances of receiving assistance.

A professional knows how to process claims, how to prepare the application, and how to strengthen the case: All aspects vital to the application for disability benefits.

About Us:

Legal Rights Advocates, PLLC is a law firm that helps clients who are battling disability or facing potential disability, including applying for disability insurance . Our team of attorneys, over the years, has helped countless clients understand their case better, guided them on the application process, and helped them win largely successful outcomes.

If you are interested in learning more, call us at (855) 254-7841 for immediate assistance.

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