I have been telling my clients for years that counting on Social Security for retirement benefits was an exercise in futility, because most folks who apply for these benefits don’t receive them (Just 35% of the 2.8 million workers who applied for Social Security Disability Insurance benefits in 2009 were approved) and, even if they did qualify, they would wait for a long time to receive them and the benefit would be a minimal (the average monthly benefit in 2007 was just $978).

According to the article, laid-off workers and aging baby boomers are flooding Social Security’s disability program with benefit claims, pushing the financially-strapped system toward the brink of insolvency.

Congressional estimates say that the trust fund that supports this program will be insolvent by the year 2017.  For more facts and figures, take a look at the article from USA Today.  Having reviewed these facts myself, I know that I need to get my clients to seriously take a look at individual disability insurance.  Without the (already frayed) safety net Social Security provided, the need for this type of insurance has never been greater.

A good individual disability insurance policy should cost 1-4% of your gross income.  With the reality of a crashing safety net staring us in the face, that 1-4% of your income will be well-spent.

Take a look yourself – request disability insurance quotes by clicking the Get Started button above now.

According to the article, the disability insurance component of Social Security was created in 1956 to provide income support to individuals aged 50 to 64 who were permanently disabled.  However, as is typical with most government programs, eligibility and benefits have been expanded over the past 54 years.

The article, submitted by the Cato Institute, goes on to suggest that this program, originally designed to help seriously disabled individuals, has become a “gigantic budgetary burden that acts more like an unemployment program.”   The long-term upward trend in benefits suggests that many might very well be taking advantage of the system.

With so much attention on budget cuts, I wouldn’t be surprised if Congress takes a long hard look at the SSDI program and, at the least, make some cuts in benefits or make qualifying more difficult.

I never thought counting on Social Security for retirement was a very good idea.  I also have never liked the idea of relying on SSDI for disability benefits, if needed.  I am now more certain than ever that reliance on either is an invitation to financial disaster.

Protect yourself with a high-quality disability insurance policy and you won’t have to worry about what happens to this government-sponsored program,

The recently-released 2010 CDA (Council for Disability Awareness) Long-Term Disability Claims Review suggests that, while applications for benefits rose 21.4% in 2009 from the previous year (also a record rise from 2007 levels), the SSDI claim approval rate continues to decline.

The SSDI percentage approval rate for applications has been trending downward since the late 90′s.  Only 35% of workers applying for SSDI disability claim payments in 2009 were approved; 10 years ago, the approval rate for workers applying for disability was 52%.

If those statistics don’t get you thinking about looking into a quality long term disability income policy, here are a few more – 56% of SSDI recipients received less than $1,000 monthly; 84% of SSDI recipients received less than $1,500 monthly (both figures from 2008).

The safety net is fraying all over.  If you depend on it to provide security for you and your family, I’m afraid you will only find disappointment at a time when you don’t need any more bad news.  Protect yourself and your family with a disability insurance policy from a top-rated company.  You’ll be a lot safer if you do.