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John M. Caris 0B50729
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State of California Disability Income Insurance
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In California, all employees are mandated to pay into the State Disability Income program. Check your pay stub to confirm you are paying this tax.
Self-Employed persons may optionally sign up for SDI and pay a premium based on taxable income. Following is an abbreviated description of the program. |
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Waiting Period:
Length of Benefit: Amount of Benefit: Adjustments to Benefit: Definition of Disability: Links: |
7 days
52 weeks for employees 39 weeks for self-employed Pregnancy: 2-4 weeks before birth, then 4-6 weeks after birth. 60-70% of previous wages, subject to a formula and income history. $1.252 weekly maximum cap. (2019) Tax free Vacation pay does not reduce SDI payments Sick Time or PTO paid may reduce SDI benefit Workers Comp benefits may reduce SDI benefit Unemployment insurance may reduce SDI benefit Family Leave benefits may reduce SDI benefit Social Security benefits may reduce SDI benefit Includes Pregnancy Includes Elective Surgery Any time your doctor certifies that you cannot do your job, you may be considered disabled by the program. Typically, this means you simply have to be unable to do the regular and customary duties of your job. EDD SDI Disability and Paid Family Leave Benefits Full Program Description EDD SDI Self-Employed Program Description EDD SDI Benefits Calculator |
Social Security Disability
Social Security Disability Insurance is a program administered by the Social Security Administration that provides benefits to totally disabled people.
Only adults who have earned enough work credits are eligible.
Only adults who have earned enough work credits are eligible.
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Waiting Period:
Length of Benefit: Amount of Benefit: Adjustments to Benefit: Definition of Disability: Links: |
Benefits approval may take 2 years or more.
You can receive disability payments until you reach retirement age so long as you remain disabled. Calculated by formula, possibly around 47% of historical income. Consult your Social Security Statement for a personalized estimate of disability income benefits available to you. Benefits are taxable according to a formula. Veteran's benefits and private insurance payments usually do not reduce benefits. Workers compensation settlements may reduce benefit. You can no longer work in your previous occupation, you can't adjust to a new work environment, and your disability prevents you from being able to return to work for at least a year. Social Security pays only for total disability. No benefits are payable for partial disability or short-term disability. Social Security Disability Program Create An Account To Get Your Social Security Disability Income Projection |
Private Disability Income Insurance
California employees have access to the State Disability Income program, which effectively insures at least 60% of up to $108,506 of wages for up to 1 year. (2019). This limits the need for short term disability insurance, except for high income individuals.
Self-employed persons may buy into this program for a cost of about 5% of income for up to 39 weeks of benefit. Buying in may make sense if health conditions preclude qualifying for private insurance.
Given that the Social Security Disability Income program has such a strict definition of disability (increasing the possibility of rejection) and typically long approval times (2 years or more), this program may be unreliable to secure your family's financial stability.
Private Long Term Disability Insurance allows families to continue to receive a regular income in event of a disabling injury or sickness. Definitions of disability are typically broader (easier to get a payment) and can even pay for partial disabilities and rehabilitation benefits. Some policies allow payments for disability even if working in another occupation. Waiting periods to qualify for benefit may be a short as 60 days.
Call John Caris at (707) 935-6294 x103 to discuss your disability income needs and create a plan to secure your family's income security.
Self-employed persons may buy into this program for a cost of about 5% of income for up to 39 weeks of benefit. Buying in may make sense if health conditions preclude qualifying for private insurance.
Given that the Social Security Disability Income program has such a strict definition of disability (increasing the possibility of rejection) and typically long approval times (2 years or more), this program may be unreliable to secure your family's financial stability.
Private Long Term Disability Insurance allows families to continue to receive a regular income in event of a disabling injury or sickness. Definitions of disability are typically broader (easier to get a payment) and can even pay for partial disabilities and rehabilitation benefits. Some policies allow payments for disability even if working in another occupation. Waiting periods to qualify for benefit may be a short as 60 days.
Call John Caris at (707) 935-6294 x103 to discuss your disability income needs and create a plan to secure your family's income security.