Private Disability Insurance Proves More Advantageous
Created on July 20, 2015
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Read the original report, "Private Disability Insurance Option Could Help Save SSDI and Improve Individual Well-being," by Rachel Greszler.
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Note: SSDI benefits are capped at $56,849 for anyone earning $118,500 or more in 2015, and most private DI programs place a monthly cap on benefits ranging from $5,000 to $10,000. In the charts above, a cap of $7,750 was used. Sources: Author’s calculations using Social Security Administration's benefit calculation formula and typical private DI benefits equal to 60 percent of prior earnings with a $7,750 monthly benefit cap; author's calculations based on average private LTD cost of $245/year (Gen Re, Disability Fact Book 2013-2014); and average $48,186 wage of private LTD recipient (Autor et al.).
Tags: Social-Security-Disability-Insurance, Taxes, Government-Spending