It’s important to think through each possible “Plan B.” However, are any of these really viable alternatives?
• Personal Assets Most financial advisors recommend counting on cash reserves only
for the first few months. A long-term disability can rapidly erode assets.
• Social Security Given the stringent requirements to qualify for benefits, fewer than
30% of claims are approved at the initial level. After all appeals, only about half of
claims are ultimately approved. (Source: Social Security Administration, 2006)
• Workers Compensation Benefits generally cover employees for job-related accidents
and illness, not those suffered outside of the workplace.
• State Temporary Disability NY, NJ, CA, HI and RI provide a minimal level of shortterm
coverage for employees. Other states offer no such coverage.
• Group LTD Employer and association long-term disability plans are highly variable,
but rarely offer benefits like a guaranteed premium or cost of living adjustment.
Benefits under employer plans are generally offset by Social Security and other
government programs. Review your coverage carefully.