Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

Frequently Asked Questions

 

"Is Individual Disability Insurance Similar To Social Security Disability Insurance (SSDI)?"

 

Answer: Yes and no.If you are deemed disabled, and you qualify by their guidelines, each will pay a monthly amount determined by various factors.To be more specific there are three types of disability insurance that may be available to individuals: either federally- or state-sponsored, or individually purchased. An explanation of each type, along with some distinguishing characteristics follows:

  • Social Security Disability Insurance (SSDI)—The US Social Security and Supplemental Security Income disability programs are the largest of several Federal programs that provide assistance to people with disabilities. Both are administered by the Social Security Administration and only individuals who have a disability and meet medical criteria may qualify for benefits under either program. Social Security Disability Insurance pays benefits to you and certain members of your family if you are "insured”, meaning that you worked long enough and paid Social Security taxes. Supplemental Security Income pays benefits based on financial need.
  • State Disability Insurance— Some states provide disability benefits to qualified residents. Residents of California have access to California State Disability Insurance (SDI) which is a partial wage-replacement insurance plan for California workers. This program is state-mandated and funded through employee payroll deductions. It provides affordable, short-term benefits to eligible workers and the benefit amount is determined by the resident’s level of income over the previous 12 months.
  • Individual Disability Insurance— Most individuals have some sort of disability insurance through their employer, in the form of worker’s compensation, an employer group policy or through purchasing their own policy from an insurance broker.