How to Deal with the Financial Effects of Long-Term and Short-Term Disability
Monday, September 15, 2014, 1:00 AM | Leave Comment
Disability was originally intended for those who had severe physical, mental or emotional problems making it impossible for them to hold a normal job. Unfortunately, some long-term unemployment benefits are being shifted over into disability programs.
Here is how to deal with the financial effects of long-term and short-term disability.
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Short-Term Disability
The goal of short-term disability is to provide funds while you recover from a minor injury. First, the government will want you to exhaust all of your paid sick leave and time off. Check your state for worker’s compensation benefits, these will vary.
Typically, count on receiving about two-thirds (66%) of your normal wages. You will probably need to cut out those extra frills – restaurants, sporting events and movies. Calculate about six months to one year for short-term disability benefits.
If you have emergency savings, then you will need to budget these based on the total amount of money divided by the time you expect to be incapacitated.
For example, $1,200 over 12 months would mean you have $100 per month. Once you start working again, make sure to replenish your emergency rainy day fund again.
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Long-Term Disability
When you are incapacitated so severely that you cannot return to work ever, then you will collect long-term disability. Social Security disability benefits can extend all the way until you reach retirement age.
The government will perform a “Continuing Disability Review” (CDR) every three to seven years to determine if you have improved enough to return to work.
If you return to work, Supplemental Security Income (SSI) will be reduced once you reach a “Substantial Gainful Activity (SGA)” of more than $1,070 per month in 2014.
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Hire Personal Injury Lawyer to Protect Rights
Due to the periodic review of your disability eligibility, it pays to hire a personal injury lawyer like Robert H. Littlejohn to protect your rights.
He will know the latest laws and help you navigate the bureaucratic red tape. He can offer advice on your options if your disability status should change.
He can also file a lawsuit to defend your rights as a disabled American.
In conclusion, disability will provide a percentage of what your total income was before the injury. These programs were meant to be “band-aids,” not full solutions.
By hiring a personal injury lawyer, you can develop a feasible plan and protect your rights as a disabled American.
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