Saturday June 30, 2007, 8:33 am
The article from the New York Times:
By HILLARY CHURA
Published: June 30, 2007
It took just 17 days for Cindy Wrenn to realize that her disability insurance premium was not just another drain on her checking account. One-third of American workers are likely to be disabled for an extended period, and she became one of them when she had a stroke and brain aneurysm at age 28.

Mrs. Wrenn signed up for her long-term disability insurance policy in February 2002, as a supplement to the one she had through her job as a licensed title agent. After her medical emergency, the policies paid 70 percent of her salary for the six months it took her to get back to work full time.

“We thought we were too young to have an illness and were pretty secure in our jobs,” said Mrs. Wrenn, of Knoxville, Md. “It wasn’t an outrageous premium, so we did it. Because of disability insurance, we got to follow through with the purchase of our house, and that is where we are living today.”

Disability insurance provides partial income replacement so that if someone becomes disabled, they need not dive into savings, sell a home or radically change how they live. Working people are more likely to become disabled than they are to die prematurely, even though twice as many people have life insurance as have disability coverage, according to industry statistics.

According to the Department of Housing and Urban Development, illness is a major factor in home foreclosures.

About one-third of 20-year-old workers today will become disabled before they hit retirement age at 67, according to the Social Security Administration. And the primary cause of disability is chronic disease — cardiovascular, musculoskeletal problems and cancer are leading diagnoses — rather than work-related mishaps or nonworkplace accidents, according to a 2007 study for the Life and Health Insurance Foundation for Education, a nonprofit organization that informs the public about insurance needs.

While job-related expenses decrease if someone cannot work, other expenses can soar, especially if homes must be altered to accommodate a disability, said Craig Sampson, a lawyer in Richmond, Va. He bought disability insurance in 1999 when he was self-employed. He pays about $800 a year for $30,000 in coverage.

“Being disabled, you can go down the financial tubes fairly quickly,” he said. “Not only do you have regular living expenses you are unable to meet, but you have other expenses and all the uncovered medical bills. There’s a lot of stuff health insurance doesn’t cover.”

Tammy Brown of Bradford, Ark., signed up for short-term and long-term disability insurance after she started working for Wal-Mart Stores when she was 17. Fifteen years later, in December 2004, when she was 32, she learned that she had amyotrophic lateral sclerosis, or Lou Gehrig’s disease, and was told she had two to five years to live. She took the summer of 2005 off to spend time with her children, then 6 and 9, and received short-term disability. She went back to work in a wheelchair for about a year, then left on long-term disability in 2006. She receives about half of her salary now.

“Without disability, we would’ve lost our home, our vehicle,” Mrs. Brown, now 34, said. “We probably would’ve had to move in with my in-laws.”

The family bought a handicapped-accessible van and installed a handicapped lavatory complete with roll-in shower and rails around the toilet as well as two ramps to the house and a lift to help move Mrs. Brown around the home. Now unable to use her hands or arms to any degree or walk, she needs 24-hour care, either from relatives or someone they pay.

“As I look back on it, I don’t know what we’d have done without it,” Mrs. Brown said. “I never thought I’d ever use it. I thought I’d be working at Wal-Mart until I was 60 or 70.”

There are two major types of disability insurance. Short-term coverage, often offered by employers, covers the first part of a disability and may provide income for a week up to a year or two, depending on the policy.

Long-term insurance starts after short-term coverage ends and helps replace income for a predetermined period, usually two or five years or when the disabled person retires. It can be offered through work — though usually not free —as well as through private policies.

Even those with a policy through work should consider buying private coverage, as an employer’s policy may be bare-bones, could take a while to begin and will not continue when the employee changes jobs. It may also exclude pre-existing health problems.

About 42 percent of full-time workers have no short- or long-term disability, according to Michael Fradkin, vice president for disability product management for the Metropolitan Life Insurance Company. Specialists agree that if you can afford only one type of disability insurance, buy long-term coverage since being without an income for several months would be a burden but being without an income ever again could be devastating.

Because independent disability insurance tends to be expensive — and becomes more so as people age — specialists urge workers to buy it as soon as they start working so they can lock in lower rates. Besides, young workers often have not yet developed health problems that will hinder coverage later.

Mr. Fradkin said many employers offer disability policies, but some have been shifting costs to employees. At the same time, insurers are changing policies to make benefits less generous. They also are becoming more selective in who is granted a private policy.

The policy should replace at least 60 percent of take-home salary and ideally up to 80 percent, if that level of coverage is affordable. Disability insurance will not cover the whole salary for fear that there would be no incentive to work if the entire paycheck could be collected for staying home.

Before purchasing an individual long-term disability policy, it is best to figure out monthly expenses as well as any income from employers, investments or the government. Realize, however, that Social Security payments tend to be minimal, have a five-month waiting period and apply only if someone cannot do any job. Payouts through work policies are subject to taxes, while benefits through independent coverage are tax free.

Bruce Block, a disability specialist with Jenkins Block & Associates in Baltimore, said few people really understood their coverage. Plans vary. Some pay if someone is unable to work in her own professions; others pay if a person cannot do any job, Mr. Block said. Some offer a combination. Others provide coverage for only a few years, some until Social Security begins.

Premiums vary depending on age, sex, income, health, whether a person smokes, what type of job they have and the exclusions they accept. Generally a young nonsmoking accountant who would not need a payout for two years would pay a smaller premium than a chain-smoking construction worker who would want immediate disbursements.

Cara J. Lovenson, an insurance broker and employee benefits consultant in New York City, said she recently sold a policy to a 45-year-old man in relatively good health who is paid about $200,000 a year. She said the policy cost him about $2,800 a year, covered 80 percent of his salary and started payments after 90 days.

Mrs. Wrenn said that when she and her husband, Matthew, discuss ways to cut expenses, dropping their disability is never an option.

“I’ll never let it go,” Mrs. Wrenn said, “well, not until I retire.”

Saturday June 30, 2007, 8:41 am
There are many types of disabilities, ie hearing, vision, arthritis, breathing disorders like emphysema, multiple sclerosis, stroke, learning disorders, psychiatric disorders etc, etc. Here is a link to the Americans with Disabilities Act for your information: http://www.eeoc.gov/types/ada.html

Saturday June 30, 2007, 1:15 pm
Thank you for posting this Mary J. I had to retire early because of a dis-ability (back) and applied for Social Security Disability. I earned it and the first line was "because of your excellent work background" And yet many Congressmen and Americans treat Social Security and Social Security Disability as if it were something people "take" from the system. We earn it from working, and nobody knows when a genetic flaw will hit and cause a total change in one's life, including the end of one's career or ability to work. These benefits must be maintained for Americans because we all are human and without them so many people would be in trouble and unable to keep their homes, pay for prescriptions, and take care of their families. Thank you Mary. Noted and Forwarded.

Saturday June 30, 2007, 2:55 pm
I have Rheumatoid Arthritis and Fibromyalgia and was forced out of my State of Michigan Govt' job at age 50...I had to fight 3 1/2 yr to finally get Social Security Disability. I was rejected twice and then called Congressman Bart Stupak, my US Rep and in less than 6 months, just before we lost our house I FINALLY got my SSD. There is a continuous filling out of follow up medical paperwork and such but it has been a Godsend for us! We would have been living basically on the streets without it! I was not ready to retire for a good 10 yr from my job and so my medical disability retirement barely covered my small house payment!

Thank God for it!

Saturday June 30, 2007, 3:13 pm
American work envornments are making people sick. I suffer from life long depression and anxiety. Oh, but is extremely hard to get disability for.

Saturday June 30, 2007, 5:49 pm
Thanks Mary, being a disabilities advocate for longer than I'm willing to discus, I see this everyday and SSI or SS is a mere pittance of what one needs to survive, no less keep the home, car, furniture, food, you know...all those luxury items...he he. With one brief stay in the hospital, you can kiss those things goodbye and with a permanent disability, they call it "the spend down system". That means, sell everything a piece at a time until you have nothing left and your eligible for assisted housing, food stamps, Medicare/Medicaid, etc. etc. which I've watched countless people do. Without "universal health coverage" like most of the industrialized countries in the world, or "great" and "expensive" health insurance, your doomed. We are the richest country in the world and need to have universal coverage like the rest of the world. THATS the problem!! Noted twice, but the second one didn't take.....darn!
PS, THE SYSTEM IS A LIVING NIGHTMARE!!!!!!!

Saturday June 30, 2007, 7:34 pm
Greetings Dear Mary,

Thanks so much for posting this important story!!! As a disabled person (and it took me 21 years to get it as I had "17 years of education" they decided there had to be SOMETHING I couild do . . . ha ha!!!) I understand the trials and tribulations of others. In fact, given that I was injured so young (25), I only get $400 per mo. and of course no prescription drug coverage (no, I didn't take advantage of it as hubby has insurance!). If it were not for the fact that a man loves me the way he does, and works his arse off every single day . . . I would be one of the thousands of homeless and most likely without medications. And that in and of itself would drive me over the top . . . or bottom!!!

Those with back injuries such as myself have the toughest time getting their disability benefits!!! It's a difficult condition to diagnose, find the problems with . . . and then take care of!!!! Mary you are a true star darling! =)

Maureen

Saturday June 30, 2007, 8:54 pm
Mary you should see Michael Moore's new movie

Saturday June 30, 2007, 9:35 pm
These systems, including social security only really work if you have been able to pay into them for a long time on a good paying job. I struggled to keep working even after my doctors told me to stop. However I could only keep it up so long and after only 17 years working on and off when I could I had no choice but to stop. My SS is beneath the poverty level. I could never get one of these types of insurances because I had a pre-existing condition (since birth). The disabled in this country are treated worse than the elderly and that's pretty darn frightening. Now I'm on a list for low income disabled housing. because I can't even afford my regular one bedroom apartment any more. The waiting lists are so long I don't know when I may get one IF I will get one and I don't know what I will do if I don't get one. I'm a smart intelligent person who just happens to have been born with a health problem there is no cure for. I don't think I should be swept aside when criminals drive past me waiting for the bus in a brand new Lexis. All I can say is prepare folks because something could go terribly wrong any you could be next.

Sunday July 1, 2007, 5:25 pm
Well, I have read through this thread and have noted it...I am grateful that Mary posted the information, but disability through one's job ( in many, many cases--probably most) just isn't enough , and barely covers expenses for the basic necessities in life--such as a home, food, and clothing; Some with a short-term dis-ability might find that they can "get by" with survival and keeping the home, etc.---but-- Disability insurance from one's company ( if one even has it in the first place) runs out VERY quickly, because most companies will often fire the disabled person for being absent from work too long! Then, one finds that suddenly, there just ISN'T the coverage you expect , as paid out to the insurance company from from your paycheck---(Think you're covered by the A.D.A. law? [re: retaining your seniority position or having your company keep you on and find another job task or position for you--or even retain you in your previously held prior -to- dis-ability- position? ]? Think again! The company may possibly no longer" care" about you after your years of service---and the company's disability coverage will run out , and even when you have 60% for one -to- five years, it just isn't enough to cover expenses that were covered by one's full paycheck or salary. A worker away from work with a disability will usually find that the payments are very closely scrutinized, the checks are late, and he/she is constantly harassed by the disability insurance "quality control" personnel to continuously send in paperwork monthly or more often, "PROVING" you're "STILL DISABLED",before they even make out the checks. Even if the checks arrive on time, it's an unnecessarily emotionally-wrenching task and hassle to have to continually "PROVE " that you're unable to work. ( and I guess, "worthy" or "deserving" of your entitled benefit amount). The checks from disability insurance are not enough to allow you to keep what you've accumulated --they're not usually enough to cover you for an entire month, month-after-month-after month... and you're left with having late payments on the house, apartment, car or cars, insurance policies, etc., and not enough money to cover those, let alone miscellaneous expenses that are deemed "unnecessary" [such as car payments ( "they"'ll say: why do you need a car? There's a public transit system everywhwere!); medical insurance co-pays [these add up FAST] , car insurance, home insurance, maintenance costs, etc. etc. all these have to be paid...and in the meanwhile, the dis-abled person suffers the physical and more-debilitating emotional, consequences. If one tries applying for Social Security Disability benefits, "they" seem to drag it on for years, until the dis-abled person is down to absolutely nothing, and has gone through foreclosure, eviction, had to sell off the car, the furniture, any heirloom and antique possessions.... had to sell everything accumulated through a lifetime of working and paying into a system that then ----tells you that you NEED TO , or CAN, GO BACK TO WORK--even if you've been diagnosed as fully, totally, permanently disabled by your own physician,(s) and your dis-ability is extremely obvious, or even a terminal illness. The "system" requires that you continually "Prove" to them that you are dis-abled and cannot work. If you're able to work, (the theory apparently goes that there isn't any such thing as TOTAL disability) --the company , through their agreement with their insurer, has to attempt to hire you on in "something" that you can do---i.e., they will find you a "lesser job", change your position, have you work part-time, BUT more than likely any suggested job will be impossible to perform since you truly CANNOT work (but you are forced to "try" by the "System"). Most find that their companies have long since forgotten them, ( since the dis-abled person is usually off the job for months...) even if you ARE able to work again, most companies would rather dismiss you . ( sadly, the workforce employers will first re-direct you to either their pvt. rehabilitation company to find you a "job that you can do", and then you'll get the run-around or be earning less than the disability paid--that is, IF you can even work--which "They" say you can, [despite your doctor's statement to the contrary] ... or they'll direct you to your state's "vocational rehabilitation agency"). You will find that State Vocational "Rehabilitation" offices are sadly lacking in personnel who actually care about your "case", let alone your career, or how smart you are, or getting you any help to actually "rehabilitate". In the meanwhile, you're hurting, suffering, and your doctor has to see you more often because you are getting worse with the added frustrations of the "System"...so your doctor again writes up a diagnosis and chances are, you will need to apply for your Social Security benefits that you so worked hard for and EARNED from years of paying into the "system". Be prepared for a LONG FIGHT!!!! 2 out of 3 claims are denied and dismissed, and several appeals will be needed to obtain what YOU PAID INTO THE SSA System in ALL THOSE YEARS OF WORKING FOR A LIVING. That's why there are so many lawyers "out there" that "specialize" in getting people the SSI or SSDI benifit s to which they are entitled, and which they deserve, as meager and insufficent as they are. Social Security Disability and SSI will be your SOLE resource left to try--after all the rest of your income sources are exhausted--you will have spent your pension funds or any savings by now to have merely survived; The lousy, meager disability payments from the company policy will have ended-- but in most cases, the dis-ability will have progressed through it's "Normal" course, the dis-ability will be more debilitating, and you will almost be down to nothing, and quite often, WILL have nothing left. You might even be homeless by the time you have been run through the gamut of company disability payments and selling off all your property, piece by piece, just to survive, all the while having everyone tell you that you ARE capable of doing SOME job even though dis-abled. It's a vicious circle of... well..---.MIS -TREATMENT and --dare I say it?-- EVEN DISCRIM INATION --that happens to the majority of suddenly- dis-abled workers who suddenly find themselves diagnosed with a serious illness or condition, have a dis-ability that's congenital and incurable, or had an accident at work ( Worker's Compensation is also difficult to receive for very long, and as with company disability policies--they attempt to end the benefit payments ASAP) ; It's just not fair, but we, Americans with dis-abilities ---are shamefully treated and apparently, not recognized as contributing or "worthwhile" human beings as soon as the "dirty" word "disabled" is attached to us--at whatever stage of life. I, like other contributors/commenters to this thread, have seen the horrid treatment that the "System" inflicts upon dis-abled Americans--Our Country has the medical technology to save a child born prematurely who ends up with multiple disabilities--but our Country does not have a "system" that treats dis-abled persons with dignity and respect, not even empathy. Americans need to have a very good health insurance system in place and a guaranteed insurance policy for working Americans, and a REAL rehabilitation services program in place-- to cover any unexpected income loss from chronic illnesses, medical condition(s) , or accident. As things are now, one can only "hope" for survival and/ or "pray" and "wish" for a better system to come into being. While our "System" has the medical technology and knowledge to rehabilitate & /or correct & "cure", ( for the filthy rich or heavily insured, that is ) --- it sadly lacks in empathy. I would suggest that every working American buy the company disability policy, but get back-up policies and make sure that they all pay out what they promise. I'm sadly, but acutely, aware that most companies in America do not even provide ANY medical or health insurance policies for their workers. This "SHOULD" be a mandatory thing for ALL employers! We can attempt to correct our country's sad policies via petitions , protests, boycotts, letters-to-the-editors-, and "elections", but it sure doesn't seem to be any priority for our nation's "leaders" to ensure the alleged great "quality of life" we Americans are alleged to have.

Sunday July 1, 2007, 7:36 pm
http://www.care2.com/news/member/818150751/413009

Please take the Action and Note if you agree.

Sunday July 1, 2007, 8:58 pm
Thank you for your great comment Donna B, and all of you!! Great commenting!! Rabbit's link is a "must sign" link also. PLEASE go there and sign. Advocating for this new bill is extremely important to ALL of us. Thank you!!