Social Security Disability Insurance (SSDI) is a federal program that provides financial assistance to qualified individuals who are unable to work due to a disability. Funded by the Social security taxes, SSDI is a great security benefit available to the American workforce in case of a disability.
Who May Qualify?
There are basically two considerations to qualify for an SSDI, your disability condition and your work history.
Disability. You must have a physical or mental disability that stops you from working that is either expected to last for at least 12 months or is expected to result in death.
Work History. Social Security Administration (SSA) determines your eligibility based on your earned work credits. Work credits are earned based on your covered annual income which is basically the income that is subject to Social Security tax. You can earn up to a maximum of 4 credits per year.
The required amount of covered earnings varies per year. In 2024, you can get 1 credit for every $1,730 covered earnings.
To qualify for SSDI, you must earn at least 20 credits in the last 10-year period before your disability began. However, those age 30 and below may still qualify with lower required credits.
What are the benefits of an SSDI?
If you qualify for an SSDI, the program will provide monthly payments based on your average lifetime covered earnings before the disability started. So, the higher covered earnings you have on your record, the higher your monthly SSDI payments.
After two years of receiving SSDI payments, you will be eligible and automatically be enrolled for Medicare, regardless of your age. This can significantly help in reducing your hospital and medical expenses.
Those who have ESRD (end-stage renal disease) can get Medicare much earlier than normal depending on the patient’s condition while those with ALS (Lou Gehrig’s disease) can receive Medicare as soon as they get entitled with the SSDI benefit.
Furthermore, your family or dependents may also qualify for financial support from the SSDI program.
The Application Process
There are several ways to apply for SSDI, you can submit an online application, apply via phone, or in person. To apply via phone or in person, you need to call Social Security Administration (SSA) and request for an appointment. Unless the SSA tells you to do so, do not mail your application to avoid processing delays.
You will be asked to provide information and records about your personal, medical condition, work history, bank account (for potential benefit payment), and family members. If you meet the required credit points, your application will then be reviewed by a Disability Examiner. The medical evaluation may take 6-9 months to finish and may request for further forms or requirements.
Once they are done with the review, they will send you a letter to inform you if your application was approved or denied.
While the SSDI application may be a long and complex process, its benefits should not be disregarded. The financial assistance it provides to individuals who can no longer work because of a disability can help cover basic living expenses, medical expenses, and improve a family’s overall financial health during a crisis. Prepare all the necessary documents and records to improve the chance of a successful claim.
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