BOSTON ( MainStreet) -- Tragedy often factors into shrewd financial planning. Life insurance, perhaps with a long-term care rider, anticipates the medical hazards of aging. A trust, backed by a will, ensures that loved ones are supported after we die. We are advised to sock six months to a year of pay into an emergency fund.
It can take years to maybe, just maybe, collect those Social Security disability benefits you're relying on.
But all that is usually fueled by a paycheck. When an accident or debilitating illness strikes, aside from some specific insurance holdings, you may see all your foresight wasted. The good news is that there is Social Security Disability Insurance, a government benefit provided through the Social Security Administration. A portion of FICA taxes funds the program, which was established in 1954. Benefits are paid out to those unable to work (for at least a year) until they either well enough to resume their job or traditional Social Security kicks in at age 65. It may sound like a godsend to those who need it. The bad news is that it can take years to maybe, just maybe, collect. According to the SSA, a 20-year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age. Approximately 3.4 million people applied for SSDI in fiscal year 2011, and the majority were rejected -- by nearly a 3-to-1 margin. Even getting to the point of rejection can be a challenge. The backlog of cases has grown to more than 1.8 million people across all levels of the five-step evaluation process, and the cumulative wait time can be more than 800 days. That logjam is expected to worsen in years to come as government cutbacks trim the SSA's staff, even as newly allowed medical conditions and mental disabilities increase the number of applicants.