The Social Security Administration recently announcesbeneficiaries will not receive higher benefit checks for a secondconsecutive year, which, The Guardian Life Insurance Company ofAmerica says, highlights why individual disability income protection should be attainedbefore it's needed.

Of the Americans on Social Security, almost 10 million receivedisability benefits, rather than retirement. Annually,cost-of-living adjustments are automatically fixed based on aninflation measure passed by Congress in the 1970s, but earlier thisfall the Department of Labor released inflationfigures signifying consumer prices are less than two years ago,which is when COLA was last applied, leading to no higher benefitchecks in 2011.

"The official absence of inflation isn't much comfort to thoseAmericans receiving disability benefits whose savings and homevalues haven't recovered from the recession," says LawrenceS. Hazzard, vice president of product strategy atBerkshire Life Insurance Company of America, which distributesindividual disability income insurance.

"Having personal disability insurance in place offers a measure of control overmaintaining your standard of living if injury or illness preventsyou from working," Hazzard continues. "And the best individualdisability income policies allow you to customize your coverage toavoid the type of economic uncertainties currently faced by SocialSecurity recipients."

Guardian's policy includes a Cost-of-Living-Adjustment Riderwith three options:

• Four-year delayed - Guardian increases anindividual's monthly benefit each year by 3 percent compounded, andthose increases begin on the fourth anniversary of when youoriginally became disabled.
  
• Fixed 3 percent - Once an individual have beendisabled for 12 months, Guardian raises the monthly benefitannually by 3 percent.
  
• Up to 6 percent - Guardian increases anindividual's monthly benefit each year based on the changes in theconsumer price index at no lower than 3 percent compounded and nohigher than 6 percent compounded.

"These are COLA options that you control," Hazzard says."Whether you're totally disabled and unable to work, or partiallydisabled and not earning what you did before your illness or injurystruck, you want to protect the 'buying power' of your disabilitybenefit against the uncertainties of the economic landscape,regardless of what Washington says."

Additionally, Guardian offers provisions to maintain anindividual's policy value while that person is still healthy. Thisincludes the Future Increase Option Rider, which allows anindividual's policy to grow with his or her career. Traditionally,an individual must provide evidence of good health during eachapplication to acquire that additional coverage. However, policyowners with the FIO Rider, ProVider Plus can buy supplementalcoverage every year until age 55 without a medical insurabilityrequirement.

Another option is an Automatic Benefit Enhancement Rider, whichautomatically increases a 4 percent compound to an individualdisability policy's monthly benefit. For up to five years, opt-inincreases any annually, whether there is any change in health,income or occupation. With an ABE Rider, there is no need to apply,and the individual can annually opt out from the benefit increaseand subsequent premium increase. After two successive increasedeclines, the rider is terminated.

Additional coverage is still not a replacement for aprimary solution

But even when in a thriving economy, individuals shouldn'tassume Social Security can substitute as their need for individualdisability income insurance.

"Just as Americans have come to realize that they need to savefor retirement throughout their working years and that SocialSecurity retirement benefits on their own will not be adequate fora comfortable retirement, they need to understand that SocialSecurity and other potential sources of income after a disability-- like a spouse's salary, personal savings and worker'scompensation -- are supplemental options at best,"Hazzard says, "because they can eventually be depleted andeligibility isn't guaranteed.

"Especially given how difficult it can be to even qualify forSocial Security disability benefits, an individual disabilityincome insurance policy is the best way to prepare for a potentiallong-term illness or injury."