Employment can be interrupted by sickness or disability. In situations like this, it cannot be helped that the sick or injured individual be concerned not just by his recovery but also by his loss of income. The need to replace the lost income to support those financially dependent on him becomes urgent.
There are two main income replacement programs and these are workers’ compensation and Social Security disability insurance. The benefit of unemployment insurance is not available for those who lose work on account of a temporary or permanent disability.
Workers’ Compensation refers to the government program or money and medical benefits provided to employees who are injured temporarily and permanently or become ill as a direct result of work. The amount of workman's compensation is usually based on the injured or ill employee's salary.
It is the program designed to promptly provides an employee with replacement income. This program may likewise pay the medical bills resulting from a workplace injury or illness; compensate workers for a permanent injury, such as the loss of a limb; and provide death benefits to the survivors of workers who die from a workplace injury or illness. Workers’ Compensation Laws regarding differ from state to state. In Alabama employers are required to file all workman's comp claims and payments with the state and are mandated by law to provide compensation for a workplace-related injury or illness that lasts more than three days.
Social Security disability insurance (SSDI) is another income replacement program. This program is intended to provide income to adults who, because of injury or illness, cannot work for at least 12 months. The benefit is provided after five months of disability and is strictly available to those who paid taxes into the Social Security program while working. As a matter of fact, the amount of the monthly SSDI payment given to a qualified applicant is based on the amount that he paid into the program through taxes. SSDI recipients may continue receiving full benefits payments while working if they are making less than $1,000 per month, while those making more than $1,000 per month are eligible for reduced benefits payments. Unlike applicants of the workers’ compensation program, the Social Security disability insurance does not require that the applicant’s disability be caused by a workplace injury or illness.
Is it lawful for a disabled or injured employee to collect benefits under both workers’ compensation and Social Security disability insurance. There is no law that prohibits double compensation from both programs at the same time as long as both claims are valid. The only limitation is that if you are qualified to receive benefits under both programs, the total benefits you receive cannot be more than 80% of your average earnings prior to becoming disabled. To be sure and safe, be truthful when you file your claims and let the system decide whether you qualify for one or both programs.
The programs mentioned above are the most popular sources of replacement income for people who are not able to work because of illness or disability. There are other options that you might want to consider to help augment lost income: 1. Food Stamps – It is not a requirement that you be receiving welfare in order to qualify for food stamps. If your income is eliminated or significantly reduced for several months because you are not working, you may be eligible for food stamps. The amount of food stamp or SNAP benefits you can receive depends on your household size and income. According to the Family and Social Services Administration, the asset/resource limits are $2,000 per household except for households containing a member who is disabled or age 60 or older; then the limit is $3,250. To locate the agency in your area that issues food stamps, call your local office of the U.S. Department of Agriculture.
2. Private Disability Insurance – If you have a Private Disability Insurance which you paid through payroll withholdings while you were working or if your employer paid the full premium, you can tap into this source. Take note that eligibility and/or coverage may differ and it is suggested that review the employee policy manual or packet that your employer gave you. If you have questions on coverage or other matter, you can always approach the people who handle benefits for your employer. 3. State Disability Programs - Some states like California, Hawaii, New Jersey, New York, and Rhode Island require employers to provide short-term disability insurance (SDI) (some states refer to it as temporary disability insurance [TDI]). These are short-term disability programs that provide partial pay replacement to workers who have to take leave from work for more than a few days because of an illness, injury, or pregnancy and recovery from childbirth. Eligibility and process for short-term disability insurance (SDI) may vary from state to state although most program requirements require that you submit your medical records, that you requested a leave of absence from your employer, and that you intend to return to your job when you recover. To find out whether your state maintains this kind of coverage, inquire from the local unemployment insurance and workers’ compensation insurance offices.
4. Supplemental Social Security Income (SSI) - The SSI is a program that provides money to disabled people who have low incomes and very few assets. Take note that it is not the same as Social Security disability insurance. SSI does not require you to have worked under and paid into the Social Security program. Learn more by contacting your local Social Security Administration office.
5. Withdrawals From Retirement Plans – Check if you retirement plan allows you to withdraw from the plan prior to retirement for emergency purposes. If it does, then it can help replace or supplement your lost income.
This blog is not legal advice, but shares information on the law. We are living in hard times; people lose their jobs and many are struggling to make ends meet. Legalbargain.net gives back to society by sharing it’s knowledge and producing advocacy videos to put justice within the reach of those who believe justice is only for those with money.
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