Posted on 12/28/2017 9:28:25 AM PST by spintreebob
When financial advisers discuss Social Security benefits, it is usually in the context of counseling clients when to claim retirement benefits and the impact of that decision on the amount of survivor benefits for the remaining spouse.
But one of the Social Security program's most valuable features is disability benefits that are paid to workers and their dependent family members when they are too sick or injured to work.
Yet many advisers are at a loss when it comes to guiding a client through the disability application labyrinth. That's when it's time to call in the pros.
One adviser contacted me recently about his client that is now a quadriplegic following a car accident several years ago. The client receives 24-hour care at home at enormous expense. But it never occurred to the family — or the adviser — to apply for Social Security disability benefits. The issue only came up when the adviser tried to help the couple apply for Medicare at age 65.
"I hear people all the time talking about not wanting to apply for a handout," said Mike Stein, assistant vice president at Allsup, an Illinois-based firm that represents people filing for disability claims. "It's unfortunate that there is a stigma attached to it," he said, noting that workers have paid for these benefits through their payroll taxes over their entire career. "It's like paying car insurance premiums for 20 years but never submitting a claim when you have an accident."
More than 10.6 million people — including 8.8 million disabled workers and their 1.8 million family members — receive Social Security disability benefits. That represents about 16% of total Social Security beneficiaries. Nearly 90% of American workers under age 64 in covered employment are protected in the event of a severe and prolonged disability. The average Social Security disability benefit in 2017 is about $1,200 per month.
The Social Security Administration estimates that one in four 20-year-olds will be disabled before their full retirement age of 67 and two-thirds of the private-sector workforce has no private long-term disability insurance.
Given how a severe disability or terminal illness could disrupt a family's carefully laid financial plans, it would be wise for financial advisers to develop a list of resources where they can refer clients for help should the need arise.
Applying for Social Security is a lengthy and difficult process. In general, an applicant must meet two different earnings tests: A recent work test, based on age at the time of disability; and a duration of work test to show that the individual worked long enough under Social Security to qualify for benefits. For workers age 31 or older, they must have worked five out of the 10 years before their disability began. Younger workers face a less stringent duration test.
After filing an initial application, most workers wait four to six months for a response and Social Security denies two out of three requests, meaning many legitimately disabled people are denied benefits. Applicants have 60 days to appeal. Social Security then takes another look at the case. This step usually takes three to five months and the approval rate hovers around 20%.
At that point, an applicant can appeal an adverse decision before an administrative law judge. There is a backlog of more than 1 million pending cases. The average wait at the hearing level — for people who have already been denied benefits twice — is 605 days.
In 2008, Social Security implemented the Compassionate Allowance initiative (CAL) to fast-track individuals with certain conditions through the disability determination process by prioritizing their disability claims. Since then, Social Security has expanded its list of CAL conditions from 50 to 225.
IMPROVEMENTS NEEDED
But the U.S. Government Accountability Office (GAO) recently found that the Social Security Administration needs to develop a better method for handling the CAL initiative. Many disabling conditions are overlooked, which means these deserving applicants' claims are not expedited and they end up stuck in the lengthy backlog of Americans waiting for hearings.
Due to a lack of accuracy and consistency in the process, a simple typo in an application can cause it to not be flagged as a compassionate allowance at all, even for a condition on the approved list, Mr. Stein explained.
"I encourage people to file for disability benefits as soon as they become disabled and get an expert involved early," Mr. Stein said. "The sooner you get in line, the sooner you get to the front of the line."
Firms such as Allsup are paid on a contingency basis only if the client is awarded disability benefits. Fees are regulated at the federal level. The standard fee is 25% of past-due benefits, not to exceed $6,000.
Allsup offers a free online assessment tool for Social Security Disability Insurance eligibility and will flag individuals who qualify under the Compassionate Allowance program.
The vocational evaluator where I worked was also a licensed occupational therapist-she really knew how to find every functional strength and ability a client had-and she also made 5 days of boring mechanical and paper tests interesting by having a good dry sense of humor about just everything...
You have made my day by saying that-glad I didn’t waste my education after all, even though I seldom do case management any more-mostly work in construction for my contractor compadre-responsible for the on-site safety and seeing that everyone used proper body mechanics, use of assistive devices, etc-I also am a functioning, paid laborer on job sites-the best to promote worker safety, and make a buck-and I prefer physical work...
Glad I could make your day
Mine was just one of those freak accidents that sometimes happens.
Glad you are still keeping people safe
Thanks-I’m glad you were successfully able to return to work.
Nah. Actually I was found to be permanently partially disabled.
The workers comp is taking care of me while I retrain
SSDI is the tip of the iceberg. You should sit in some V.A. lobbies and waiting rooms and hear some of the advice between them on gaming the system. The actually injured/wounded vets are in back of the line behind these fakers.
Good luck-were that could be exciting-are you able to utilize a lot of your transferable skills in your new career?
I have heard it. Also happens out front where they gather to smoke
Thank You!
Anyone who can write an articulate comment on FR is clearly not disabled and not deserving of dependency on us taxpayers.
There are plenty of desk jobs where the only requirement is the ability to read and type.
There are mental and physical disabilities.
you obviously fall into the mental catagory!
I paid into My SS Fund for decades and now that I’m getting SOME of it back you think it’s coming out of your pocket ? Why don’t you make a Sandwich Sign with that statement on both sides and go walk around The ‘hood or Section 8 housing ? Unarmed BTW.
There are plenty of desk jobs where the only requirement is the ability to read and type
If you knew how long it takes Me to type something like this response and you were the owner/boss of a company you would never pay Me a decent amount of money. I can’t safely drive a car because I have to look at the pedals to be sure which one I’m going to be pressing because I cannot tell by feel in My feet and if I do on occasion have any feeling in them it ranges from ice cold, sciatica like lightning bolts, cramping or so sensitive ANYTHING touching them is multiplied several hundred times!If I’m looking down to the floor for that then I’m not looking at the road and therefore a danger to others on the road. Do you want Me to have an accident with your loved ones and kill them just because you think I should be pounding a keyboard ? I’m thinking probably not, but I’ll let you answer that since you know everything “o great and mighty one”!!! And would you like to know the really fun part ? After 10 years of this in My feet now it’s in My Hands also. Do you know what it’s like to not be able to do things like play with the Grandson or change a diaper because your fingers have NO DEXTERITY ? And that also applies to typing on a keyboard. Or to be able to turn a key in a door lock and twist the knob, safely use a knife to make dinner, take the trash to the street, hold hands with ones Spouse and walk around the block, hold a cup or a glass without using both hands so one doesn’t drop it ? I could go on and on but I’ll stop here so that you can try to comprehend what I’ve managed to type over the last 1 hour and 22 minutes in response to your ignorance.
I’m DONE WITH you and will not waste any more time with you.
“people” like you really piss Me off!!! Be gone with you.
A triple amputee has the ability to read and type. So does a paranoid schizophrenic. Also, there are many people who have the ability to read and type, but not for enough hours a week to make enough money to live on.
Seriously, though, those jobs also require memory, concentration, and... well, I just forgot what else I was just going to type (see?) They also require the ability to stay awake all day, which is rather difficult to do when you're taking multiple powerful medications to control your condition.
You should consider yourself lucky that you're one of the ones paying instead of one of the ones drawing. I'd give anything at all to trade places with you.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.