Introduction to disability income insurance and Social Securitydisability benefits

If case of a serious injury or illness, you will be probably be responsible for paying some of your medical expenses even if you have health insurance. If you are employed, this financial strain could be aggravated by your loss of income while you are out of work during recovery. If your disability extends for a lengthy time or is permanent, the financial effects could be devastating.

Disability income insurance is designed to pay you while you are disabled. The four major sources of funding for these payments are:

	Your employers disability insurance plan
	Your private disability insurance plan
	Social Security disability benefits
	Other government programs disability benefits

As you answer the following questions about Social Security disability benefits, think about your life today and how you would respond if you faced an extended period of disability.

Social Security Disability Benefits

Alison recently sustained an injury that is unrelated to her work. She expects to be disabled for some time and has contacted the Social Security Administration to file a claim for disability benefits. Alison has always heard about Social Security disability and looks forward to the relief it will deliver.

Alison was shocked to learn the terms of qualifying for benefits:

	First, she must be ---------- disabled.
	Second, her disability must be anticipated to be at least -------------
	Third, she must be unable to ----------------
	Fourth, if she satisfies the preceding requirements, her benefit is $2,000 per month, but she must wait ---------------- for payments to begin. The monthly payments -------------- retroactive.

Alison expects to be disabled for 11 months. Her benefits will be for -------------- months for a total of ------------- Alison ----------- receive benefits because she --------- be disabled long enough to qualify for them. (Hint: If Alison is not eligible for benefits, enter a "0" for the months and total benefit numeric entry boxes.)