What Happens If You Become Disabled While On Social Security

Disability Is Unpredictable And Can Happen To Anyone At Any Age

Disability is something many Americans, especially younger people, think can only affect the lives of other people. Tragically, thousands of young people are seriously injured or killed, often as the result of traumatic events. Many serious medical conditions, such as cancer or mental illness, can affect the young as well as the elderly. The sobering fact for 20-year-olds is that more than 1-in-4 of them becomes disabled before reaching retirement age. As a result, they may need to rely on the Social Security disability benefits for income support. Our disability benefits provide a critical source of financial support to people when they need it most.

Listed And Unlisted Conditions Must Be Severe

Whether the SSA has or hasnt listed your impairment, you will need more than a diagnosis to qualify for disability benefits. For listed conditions, your diagnosis and medical records must match the SSAs requirements for that specific condition. The medical evidence you present must align with the symptoms, signs, and other criteria for that impairment. If you dont meet all the requirements of a listed condition, you can still present your medical evidence. The SSA can review it and determine if its severity is equal to an impairment it considers severe.

For a legal consultation, call

How About Medicare At Age 65

When you reach 65, that is still the same year you qualify for Medicare. Be sure to apply for Medicare when you turn 65 to avoid paying the penalty to join later. Medicare Part A is free, and you have options to consider about paying an insurance premium to get Medicare Part B. You may want to consider paid supplemental insurance such as Medicare Advantage programs.

Don’t Miss: Social Security Office Natchez Ms

Health Coverage For People With Disabilities

If you have a disability, you have three options for health coverage through the government.

• Medicaid provides free or low-cost medical benefits to people with disabilities. Learn about eligibility and how to apply.

• Medicare provides medical health insurance to people under 65 with certain disabilities and any age with end-stage renal disease . Learn about eligibility, how to apply and coverage.

• Affordable Care Act Marketplace offers options to people who have a disability, dont qualify for disability benefits, and need health coverage. Learn about the .

You Reach Retirement Age

While you cant avoid this pitfall , its important to know about this condition.

You cant receive both disability benefits and retirement benefits at the same time. As a result, when you reach retirement age, your SSDI benefits will stop and your Social Security retirement benefits will kick in.

Recommended Reading: Work Opportunity Tax Credit Questionnaire Social Security Number

The Exception To The Rule

You may be able to get both benefits if you opted for early retirement before you received disability benefits. These are also known as concurrent benefits. This exception would be applicable in a situation where an individual retired early due to serious medical conditions. If that individual can prove that they developed the disability prior to receiving early retirement income, theyll be able to earn both benefits.

When Does Disability Pay More Than Social Security

Your PIA is the amount youd receive if you were to qualify for disability benefits. Its not that simple with Social Security benefits, however. While youre technically eligible to begin taking Social Security benefits at age 62, you wont receive your PIA until your full retirement age , which will fall somewhere between 66 and 67. At 62, your benefit amount would be only 70% of your PIA, increasing gradually until you reach your FRA.

This means that between 62 and your FRA, your disability benefit would be higher. And theres an additional benefit to taking disability: By electing for disability instead of Social Security, you allow your Social Security benefit to continue growing.

This disparity is even greater if you happen to become disabled after you turn, say, 63. The reason here is that your Social Security benefits will be determined by your PIA for the year you turn 62, while your disability benefits would be calculated with your PIA for the next year. Provided your AIME is the same or higher, then your PIA for the later year will be higher.

Don’t Miss: Maximum For Social Security Tax

The Social Security Act Defines Disability Very Strictly

Eligibility rules for Social Security’s disability program differ from those of private plans or other government agencies. Social Security doesn’t provide temporary or partial disability benefits, like workers’ compensation or veterans’ benefits do.

To receive disability benefits, a person must meet the definition of disability under the Social Security Act . A person is disabled under the Act if they can’t work due to a severe medical condition that has lasted, or is expected to last, at least one year or result in death. The person’s medical condition must prevent them from doing work that they did in the past, and it must prevent them from adjusting to other work.

Because the Act defines disability so strictly, Social Security disability beneficiaries are among the most severely impaired in the country. In fact, Social Security disability beneficiaries are more than three times as likely to die in a year as other people the same age. Among those who start receiving disability benefits at the age of 55, 1-in-6 men and 1-in-8 women die within five years of the onset of their disabilities.

Do You Need To Tell Social Security About Your Assets When Receiving Disability Insurance Benefits

Social Security Disability Insurance benefits are benefits that are paid out to Americans who have worked a certain amount of time and fairly recently, and are now considered disabled by the Social Security Administration . This type of benefit is deducted from each workers paycheck while working in the form of taxes. If you become disabled later on in your lifetime, you may be able to tap into these benefits.

To determine if you have worked long enough and recently enough to meet the requirement that the SSA sets, you will need to review your Social Security Statement. You can find this online at ssa.gov or contact your local Social Security Field Office for a copy of this Statement.

If you qualify for SSD benefits, the amount of money you have in the bank is not important. That is because this is a system you have paid into while working it is not a system based on need. Your assets are not part of the consideration when the SSA is determining whether you can receive SSDI benefits.

Read Also: Social Security Office In Russellville Arkansas

Joyce: Do You Know How Many Claims Are Submitted Each Year For This Program And How Often They Are Approved Also About How Long Does It Take To Get Approved

Cheri: There are no statistics that we can find on approval rates. The OPM statistics on this programs use, however, are interesting. In 2016, OPM reports that there were 136 CSRS disability applications and 6486 FERS applications, for a total of 6622. OPM also reports that for that fiscal year, approximately 6.7% of all retirements among federal employees were taken for reasons of disability.If you would like to see how OPM reports this data, go to this website:

The fact is that it could take up to a year or more for OPM to act on your claim from when it is fully completed and submitted, so you will need to plan accordingly. Remember that you can apply while you are employed, but you do have one year post separation to apply for disability retirement. If you miss that deadline, you are ineligible.

What Ssdi Covers And How It Works

All disability insurance policies whether government-sponsored, like SSDI, or individual coverage from an insurance company like Guardian share certain features. A good way to understand disability insurance is by evaluating SSDIs features and comparing the information to other options. The five basic features to look at include:

• Premium: The monthly or annual amount you pay for the policy.
• Waiting period: Also called an elimination period, its the amount of time after you are disabled until you can start receiving benefits.
• Definition of total disability: Every disability policy has a specific definition of what it takes to qualify for total disability benefits. Generally speaking, there are two types of definitions:
• An own-occupation definition means you qualify for benefits if a disability prevents you from working in your specialty or field.
• An any-occupation definition means you only qualify for disability benefits if you cant do any work at all.

SSDI is a government-sponsored disability insurance program that is included in your Social Security benefits, so the premiums are paid for by a portion of your Social Security taxes. The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. If you are self-employed, you pay the entire 12.4%.

Recommended Reading: Social Security Office In Lubbock Texas

How Much Money Can I Have In The Bank On Disability Benefits

Posted by Corey Luedeman

If you are looking into applying for disability benefits, you may have heard there is a limit on how much money you can have in the bank.

Its important to understand there are two types of disability benefits SSDI and SSI. The amount of money you have only matters for one of these types.

Health Resources For People With Disabilities

Federal, state, and local government agencies and programs can help with your health needs if you have a disability.

• Explore the Disability and Health section of CDC.gov for articles, programs, tips for healthy living and more.

• Learn more about benefits for people with disabilities from the Social Security Administration.

• Contact your local city or county government to find out what medical and health services are available locally for people with disabilities.

• Your state social service agency can help you locate medical and health programs.

Visit USA.govs Government Benefits page to learn more about government programs and services that can help you and your family.

Recommended Reading: How To Get Someone’s Social Security Number

Types Of Disability Policies

There are two types of disability policies.

• Short-term policies may pay for up to two years. Most last for a few months to a year.

• Long-term policies may pay benefits for a few years or until the disability ends.

Employers who offer coverage may provide short-term coverage, long-term coverage, or both.

If you plan to buy your own policy, shop around and ask:

• How is disability defined?

• How long do benefits last?

• How much money will the policy pay?

Why Does Social Security Disability End

The most common reasons that SSDI ends include:

• You return to work.
• Your disabling condition improves.
• You serve jail or prison time.

If any of these things happen, the SSA could stop your benefits. It will depend on the details of what changes and when. When your benefits go under review also matters. The SSA will discontinue your benefits if they determine you are no longer disabled.

You could get a review every 18 months, three years, or seven years. If your doctor expects your condition to get better, the SSA will review your case more often than others on SSDI.

If you are in jail for over 30 days, the SSA will stop your SSDI benefits. However, you might be able to restart your benefits after you get out of jail.

Recommended Reading: Social Security Office Shelby Nc

Social Security Helps People Work Without Losing Benefits

Often, people would like to re-enter the workforce but are afraid they might lose disability benefits if they try to get a job. If you are age 18 through 64 and receive Social Security disability benefits, you can participate in Social Securityâs Ticket to Work program. The Ticket to Work program allows you to receive free employment support services and take advantage of work incentives that make it easier to work and still receive benefits such as health care. In some instances, you can receive cash benefits from Social Security, and you are protected if you have to stop working due to your disability. Learn about our Ticket to Work program or call1-866-968-7842 or 1-866-833-2967 .

What Happens If A Federal Employee Becomes Disabled And Cant Work

by Joyce Warner

I recently sat down with Greg Klingler from the Government Employees Benefit Association and Cheri Cannon, from the law firm Tully Rinckey PLLC, to talk about the ins and outs of feds and disability insurance. This is a complicated topic and at FEEA we know many federal employees would like more information about it.

Recommended Reading: Beaumont Tx Social Security Office

The Early Retirement And Disability Decision

Determining the timing for when to retire can often be a difficult decision and it becomes even more challenging when the individual is dealing with a medical condition that interferes with their ability to work. Most people are aware of the retirement benefits that are available to workers who have paid into Social Security, including retirement benefits between ages 65 and 67, as well as early retirement benefits at a reduced rate at age 62, but often folks who retire during that age range overlook the option of filing for Social Security disability benefits, as well.

If you have a physical or mental condition that has lasted or is expected to last at least 12 months and prevents you from being able to maintain work on a consistent basis, you may be eligible for disability benefits from the Social Security Administration. When getting ready to retire between the ages of 62 and 66, you may want to consider whether you should also file an application for disability benefits. Social Security allows you to simultaneously file for disability and early retirement benefits, as early as three months before your 62nd birthday. By doing so, you can start to collect your early retirement benefits while your disability application is being adjudicated. If your claim for disability benefits is approved after you start receiving early retirement benefits, you will be eligible to receive your full SSDI benefit amount.

Applying For Disability Benefits Can Be A Challenging Process

According to the SSA, many applicants for disability benefits have had their initial application denied for various reasons, including:

• Technical problems with an application
• Disqualification based on medical information

Between 2001 and 2010, the SSA approved only about 45 percent of disability claims. This suggests that applying for disability benefits is not a straightforward process for many applicants. SSDI or SSI application errors are possible, if not likely.

You have the right to seek help from a third party to help you with applying for Social Security Disability benefits. Farmer & Morris Law, PLLC, can review your application, saving you time and helping you avoid errors that could delay your claim.

Read Also: Social Security Office In Flint Michigan

Does Long Term Disability Affect Social Security Retirement Benefits

Typically not, because the benefit period of a long term disability plan usually ends at retirement age or sooner, before Social Security retirement benefits start.

1Social Security Fact Sheet

2 last accessed September 2020

3 Council for Disability Awareness https://disabilitycanhappen.org

Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America, Pittsfield, MA, a wholly owned stock subsidiary of and administrator for The Guardian Life Insurance Company of America , New York, NY, or provided by Guardian. Product provisions and availability may vary by state. Optional riders are available for an additional premium. Some policy benefits and features are not available to all occupations.

Guardian® is a registered trademark of The Guardian Life Insurance Company of America.

2020-110222 20221130

What Are Social Security Disability Benefits

Social Security disability benefits come from payroll deductions required by the Federal Insurance Contributions Act to cover the cost of Social Security benefits, such as retirement and spousal and survivor benefits. Some of this funding goes into the Disability Insurance Trust Fund and pays for disability benefits.

According to the Social Security website, to qualify for Social Security disability benefits, you must have worked a certain length of time in jobs covered by Social Security. Generally, you need 40 credits, 20 of which were earned in the past 10 years, ending with the year you became disabled. You must also have a medical condition that meets Social Securitys definition of disability.

Younger workers might qualify with fewer credits.

SSDI should not be confused with Supplemental Security Income , which pays benefits to those who have financial needs regardless of their work history. Although these two names sound similar, the qualifications to get the payments and what you might receive are very different.

Read Also: Where Are Social Security Offices

Can Ssi Get Pandemic Unemployment Assistance

Please note: SSI beneficiaries who have lost their job due to COVID-19 are required to apply for unemployment, as SSI is the payer of last resort. Unemployment benefits and pandemic unemployment benefits received during the pandemic will not impact a beneficiarys SSI payment under updated SSA policy.

Which pays more unemployment or disability?

Benefit amounts are approximately 60-70 percent of wages and range from $50-$1,300 a week. SDI appears to pay much more than unemployment! Unemployment Insurance benefit calculator will provide you with an estimate of your weekly UI benefit amount, which can range from $40 to $450 per week.