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FINANCIAL SUITS OF ARMOR

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type of benefit. And, you must remain disabled for that entire five months if you wish to collect the benefits. After your first 5 months of waiting, the benefits begin to trickle in. However, to continue col- lecting, your disability must be expected to last at least 12 months from when the impairment started, expected to result in death, or have already lasted 12 months. It’s also important to note that the Social Security Administration rejects approximately 40 percent of all disability claims it receives.

The social security program uses your current wage subject to social security taxes to determine what your benefits would be. These benefits are paid to the disabled worker and that person’s dependents. Regardless of whatever private insurance a disabled worker has, he or she will receive social security benefits. Let’s assume that Joe Client is 35 years old. His wife, Mary is also 35, and they have two children, Tommy (age 5) and Lindsey (age 2). Joe makes $40,000 per year and becomes seriously injured in a train accident. Joe remains impaired for the five-month waiting period and begins to collect his benefits. For this illustration, we’ll assume Joe’s benefits are $1249 per month.

Joe’s monthly benefit $1249—until recovery, death, or

age 65

Mary’s monthly benefit $972—until Lindsey reaches 16 (14 years)

Tommy’s monthly benefit $972—until he is 18 years old (13 years)

Lindsey’s monthly benefit $972—until she is 18 years old (16 years)

However, there is a maximum family benefit, so in Joe’s case, he and his family would only receive about $2289 per month ($27,468 per year). As long as Joe remains disabled, his family will continue to receive $2289 per month for the next 16 years (at that point, Mary, Tommy, and Lindsey would no longer be eligible). They would then

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