Have a Happy & Healthy New Year! - the Parklander

Northwest Broward
Orthopedic Associates
Elliott W. Hinkes, M.D
Bruce S. Fletcher, M.D.
Michael A. Kelly, M.D., Ph.D.
• Board Certified in Orthopedic Surgery
• Fellows, American Academy of Orthopedic Surgeons
• Fellowship Trained Orthopedists in Sports Medicine
• Arthroscopic Surgery Available
Specializing In:
-Sports Injuries-
• Arthroscopic Surgery
• Fractures & Sprains
• Shoulder & Knee Reconstruction
• Adult & Pediatric
• Physical Therapy on Premises
• Bone Density Testing
954-979-3255
5901 Colonial Drive, Suite 201
(2 Lights South of Sample Rd., off of St. Rd. 7)
Automobile &
Most Insurance Accepted
62 JANUARY 2007
MEDICINE & HEALTH
IN THE SPOTLIGHT:
DISABILITY STATISTICS
By Jorge C. Garrido
How secure will Social Security help you be if you are unable to work?
It is emotionally difficult to prepare for the possibility that you may suffer
a disability as a result of an accident or illness, but it is financially
imperative to plan. Your quality of life tomorrow may depend on your
efforts today.
The Latest Figures
The Social Security Administration (SSA, 2003) estimates that three
in ten of today’s 20-year-olds will suffer a disability before reaching age
67. In another sobering statistic, the SSA reports that 75% of people
working in the private sector have no long-term disability insurance.
Essentially, three out of four workers would have to rely on their own personal
savings, limited state-run insurance, and Social Security for replacement
income in the event they could not work because of a disability. In
2006, the estimated average monthly Social Security benefit for all
disabled workers is $902. Over the course of a year, that totals approximately
$10,824, and for many workers and their families that is significantly
less than their annual expenses.
Men vs. Women
Throughout history, men have generally earned more than women.The
SSA reports (2003) that as of the year 2000, women, on average, earned
27% less than men. This disparity affects women in two ways. Because
disability benefits are based on earnings, the benefits for disabled male
workers are typically higher than those of disabled female workers.
However, the spousal benefit for widows is generally higher than that of
widowers for the same reason—the median income of men is higher than
that of women. These demographic trends are important to consider for
families planning their financial security.
Supplemental Income Sources
In addition to Social Security and personal savings, there are additional
options for workers and their families. With only 25% of private sector
employers offering long-term disability insurance, personal disability
income insurance is a viable option for workers looking to manage the risk
of losing their income. It offers coverage beyond workers compensation,
which is state-run insurance that replaces a percentage of an employee’s
income only for injuries that occur on the job, or for illnesses that are
work-related.
Disability income policies vary, but here
are some key questions to ask:
• Are you covered for both accidents and illness?
• Does the policy define disability as the inability to perform
your own job, or any job?
• How long must you wait before benefits begin?
• How long will benefits last?
• Does the policy offer cost-of-living adjustments?
• Are benefits available for total and/or partial disability?
• What percentage of income will the policy replace?
If you lack insurance against disability, or are underinsured, you are possibly
exposing yourself to serious financial risk. Avoid becoming another
statistic—plan your future today.
Jorge C. Garrido is a Financial Planner with MetLife Securities, Inc. E-mail
him at Garrido@theparklander.com.