How Company-Provided Disability Insurance Can Help When SSDI Falls Short

Social Security Disability form and Social Security card

The government-funded Social Security Disability Insurance (SSDI) program is a great idea that falls glaringly short of most people’s needs. If your family counts on your income or you have a physically demanding job, you should seriously consider purchasing a company-provided disability insurance policy.

SSDI is usually used for long-term disability claims and covers issues like back injuries, COPD, cancer, and mental disorders; if you believe that you can make a claim, talk to your doctor about your condition. The great thing about SSDI is that as long as you have been paying into the Social Security System, you can make a claim. Many people believe that this should be enough for them.

Believe it or not, most young people cannot imagine that they would ever become sick or injured enough to have to look for additional income. This should not come as a surprise; most young people think they are indestructible. That is simply not the case.

Major Pitfalls of SSDI


In order for you to be approved for SSDI, you must be totally and permanently disabled. If your medical condition does not prevent you from working for one year or more, or result in death, SSA will deny your application. According to Jonathan Riedel, a former employee of Social Security’s Office of Disability Adjudication and Review, ““You can be denied even when SSA acknowledges your medical conditions, usually because your medical conditions don’t preclude ALL work activity – only SOME work activity.”

Most people are out of work due to sickness or injury for a number of months, but it is often not permanent. If you are not permanently disabled, you will have to rely on real estate broker-provided disability insurance or your savings to cover your living costs.  

Making an SSDI Claim

It currently takes the US government six months to come to an initial decision for just over half of the SSDI applications that come its way. The rest can take more than a year. Even so, only thirty percent of initial SSA disability claims are approved, which means that seventy percent of all individuals who apply for Social Security disability are denied. If your application was declined due to your medical eligibility, you have the opportunity to request a hearing. On average hearings take at least a year to get to court.

As a matter of fact, more than 10,000 people passed away waiting to hear back on their SSDI applications in 2017. Do you or your family have the extra resources needed to wait one, two, or three years for disability coverage? No matter what your age, this is a serious question that you should be asking yourself.

The Payout

Your payout is dependent on the amount of time or money that you have put into the system prior to claiming. The average SSDI payout is under $1500 a month. The average monthly wage in the US is $3,714 a month. Could you imagine having to live on less than half of your current salary for an extended period of time?

Living on a much smaller salary can cause you to dig into savings accounts, retirement savings (with penalties), and even borrow money from family or banks. All of this can end up costing you loads in the long run and cause additional depression and heartache on top of what you are already experiencing.

1099 Advantage Pan

Company-provided short and long-term disability insurance will see that you are covered for time off due to a non-work accident, childbirth, illness, or other covered maladies. Protect yourself and protect your family with a broker-provided disability insurance policy.

Our 1099 Advantage Plan provides long- and short-term disability insurance as well as life insurance, accident coverage, and other benefits. The plan provides group insurance benefits to agents paid as independent contractors and with guarantee issue provisions. The cost to the company is minimal and the monthly cost to the independent contractor is often 30-50% less than what they would pay on their own. Contact us today to learn more.

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