IS SOCIAL SECURITY DISABILITY A GOOD 'FALL BACK PLAN?"

No one plans to become disabled. Yet, 4 out of 10 Americans will become disabled prior to retirement age. That leaves many of them with no retirement plan, no job, and no way to support the family.

Most people do little or no planning for disability. It's something we simply don't think about. Or we assume, if it happens to me, the government will have something to help me get through it. They don't.

So the question: IS SOCIAL SECURITY DISABILITY A GOOD BACK UP PLAN IF YOU SUDDENLY BECOME UNABLE TO WORK AND LOSE YOUR INCOME?

The truthful answer is: It's not as good as you may think. Here's why:

1. Social Security Disability (SSDI) is very hard to get. Their definition of "disability" is so impossibly strict that most individuals can never qualify. This is especially true for a claimant who is below 55 years old. Social Security is simply not designed for younger individuals.

2. It takes a really long time to receive an SSDI benefit. First, there is a long, complex application process to endure. This may take 12 to 18 months without a decision. You will be questioned, re-questioned, examined, poked, prodded, and delayed while Social Security makes absolutely certain that you meet their strict requirements to get a benefit. You have no idea how slow this can be. About 80 percent of case will be denied and will have to begin the even slower appeal process.

Also, there is a 5-month waiting period. After your disability begins, Social Security cannot pay the first 5 full months of your disability period. So, for example, a disability that begins on June 10th cannot get a benefit before December--even if everything goes smoothly. And since they pay 1 month in the arrears, that December check won't arrive until January. So, the disabled person goes from June to January with no Social Security check, even if he/she is approved quickly. For most folks, that leaves 7 mortgage payments to pile up with no way to make the payments.

So, Social Security isn't the best disability back up plan. That's why I recommend healthy, young working folks do some planning NOW. Get yourself a "bridge builder" plan that will buy you time while you try to get Social Security started. (No, I don't sell insurance, and "Bridge Builder" is just my term for it). But here's what I mean.

Look for any other source is potential income in case you become disabled. None of these are available just by chance. They won't be there for you unless you take action now to put them into place. But here are some good ideas to consider:

1. Disability insurance on your job. Many employers offer short term and long term disability insurance options at work. Some plans are free, some require the employee to contribute something, or some combination of the two. Most employees that I counsel with (at disability) either didn't know their company had a disability program or they didn't sign up for it. Now that they're disabled, it's too late. So, I highly recommend you find out if your employer offers disability insurance and, if it does, you grab as much of it as you can get NOW, while it's available. It isn't that expensive and it's a God-send if you become disabled. And yes, you need both short term (STL) and long term (LTD) benefits.

2. Private disability insurance. Some insurance companies offer you the chance to buy disability insurance, just like you buy auto, homeowners or life insurance. This is more expensive that a group disability policy through your employer, so not my first option. And--be careful--you want a policy that pays for medical or health problems, not just "accidental" insurance. Ninety percent of disabilities do not involve accidents, so "accidental disability insurance" is often of no help.

3. Emergency Savings. Insure yourself. Take a percentage of your earnings and sock it away in your credit union, bank or short term money market account. By making a regular weekly or monthly contribution, you can soon have an emergency fund that will carry you several months in the event of sudden disability.

4. Make your financial accounts as "disability proof" as you can. For examples: Do you have disability insurance on your home mortgage (makes the payments for you if you become disabled)? Does your life insurance policy have a "waiver of premium" rider which makes premium payments for you if you become disabled? You have to weigh the cost of these benefits against the potential value, but they should be considered.

It's the action you take today that determines what relief you can get when disability strikes. Chances are: Do nothing today, no help will be available when you need it. Prepare now.

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Charles W. Forsythe is senior partner at the Forsythe Firm in Huntsville, AL, a disability advocacy firm. This post is intended for education and information, not legal advice. Consult with your attorney or financial advisor before making any decisions. Reach Charles Forsythe at (256) 503-8151 or (256) 799-0297.