“After maximum duration” claims continue to call DCS looking for answers as to what to do for income when claims end at 65/67. Actually, a few of the stories are pretty tragic, and my heart goes out to those who will be left with nearly half, or nothing, to live on.
Take the case of the prominent health professional with a benefit of $10,000/month who was under the impression from his employer’s website that his benefits would end at age 67. In reality, his benefits recently ended when he turned age 65, and he only found out about it when checks began to bounce from his checking account.
It’s a big mistake, by the way, to continue to go to insurance portals and websites for accurate information. Employers continuously update and change their Plans. For this insured, reassurance of benefits to age 67 was ill-gotten since he either forgot, or didn’t know, that the policy adjudicated is always the policy in force as of the date of disability. Since he had a date of disability about 10 years ago, his Plan was a much earlier contract limiting benefits to age 65.
Thinking his benefits were safe for another two years, this insured did not have a Plan B, and never planned what he was going to do when benefits ended at age 67. In other words, he would be in exactly the same situation at age 67 than he is right now. It is extremely important not to take disability benefits for granted at any time. What do people do when insurers deny their claims out of the blue?
Without proper financial planning, insureds are setting themselves up for a potential disaster now, AND when benefits reach the maximum duration. It is absolutely necessary for insureds and claimants to gather information about their assets and potential future earnings capability now, rather than face financial challenges in the future.
Life always has options. But, it gets a little sticky when there his only one option left. If you’ve been taken by surprise and find yourself at age 65 with no benefit, there is only one option left – solving the problem.
Why do you see so many elderly people bagging groceries at the store? I actually stopped one day and asked a rather elderly gentlemen why he was still working. He explained that he was supplementing his SSDI income. Since SSA allows an individual receiving SSDI to work up to a maximum earned income of $2,590/month in 2024, he needed the extra income to supplement his SSDI. The $2,590 is called “SGA”, or Substantial Gainful Activity. Income over this amount is considered toward a “TWP”, or Trial Work Period. (If you want to know more about this, please go to ssa.gov and read the “Redbook”.)
My point is, however, that working to supplement SSDI is “an option.” Clearly, the above health professional won’t be able to make-up for $10,000/month loss, but with a down sizing of lifestyle, he and his family would adjust.
There needs to be a Plan B, folks. Sooner or later your disability benefits will cease. My suggestion is to go to your Plan or policy today, and find out when your benefits will end. Then, consider the possibility that your claim could be denied, and start planning. I can’t tell you what, or how to plan since very person’s situation is different. But, you have to have something in your back pocket eventually. Do it now, and be prepared.
