There are two forms of disability benefits. One falls under the SSI (Supplemental Security Income) program, which is need-based for people with less than $2,000 in assets. The other is part of the regular Social Security program: anyone who has worked in a Social Security-covered job at least 10 years may become eligible for disability benefits if he finds himself unable to work because of an illness or condition that meets Social Security's definition of disability. We will refer to this as SSDI (Social Security Disability Insurance), but it is not to be confused with the disability portion of SSI.
For those who qualify, SSDI may be a way to avoid taking a permanently reduced retirement benefit. Let's say you are 62, and have a PIA of $2,200, and have stopped working because of some physical limitation. You may decide it's time to go ahead and apply for early retirement benefits. If you do this, you'll receive a monthly benefit of $1,650 (75% of $2,200). But if you can qualify for disability benefits, you'll receive a monthly benefit equal to your PIA, or $2,200. Then when you turn full retirement age, your disability benefit will convert to a retirement benefit in the same amount (plus COLAs).
The biggest drawback is that it's a hassle. And the income doesn't start right away—there's at least a five-month waiting period after the onset of the disability, during which time no benefits are paid. Most disability claims are denied at first, which is why lawyers have their work cut out for them helping appeal their disability rulings. But if you are under full retirement age and have a legitimate disability claim, it may be worth it to file in order to avoid taking a permanently reduced retirement benefit.
Keep in mind that SSDI is only for those who are under full retirement age (after FRA they would receive their regular retirement benefit). And as someone who takes advantage of SSDI while under FRA you may be prohibited from pursuing certain spousal strategies after FRA. For example, you would not be able to restrict your application to your spousal benefit under the claim-now-claim-more-later strategy because you would already have an active application for his retirement benefit due to the automatic conversion from disability at FRA. You could, however, suspend the benefit and earn delayed credits from age 66 to 70.
Here are some commonly asked questions about SSDI:
Who is eligible for SSDI?
You may be eligible to receive SSDI if you:
You may be eligible to receive SSDI if you:
- Have
worked in jobs covered by Social Security
- Have
a medical condition that meets Social Security's definition of a
disability
To receive SSDI, your disability must be expected to last at least
one year or result in death. You will not receive benefits for partial or for
short-term disability (less than a year). For more information about work
credits for disability benefits, see Work Credits Needed for
Disability Benefits.
Why is there a five-month waiting period to receive SSDI benefits?
The waiting period is long enough to permit most disabilities to be corrected or for you to show signs of probable recovery within less than 12 months after the onset of disability.
What does Social Security consider a disability?
Disability under Social Security is based on a person's inability to work. You will be considered disabled if you cannot perform at the same working capacity as you did before, and Social Security decides that you cannot adjust to other work because of your medical condition(s). Your disability must also last or be expected to last for at least one year or to result in death.
Where can I get a list of disabling impairments for Social Security Disability?
You can get a copy of Disability Evaluation Under Social Security ("The Blue Book" 5/02; SSA Publication No. 64-039), which contains the medical criteria Social Security uses to determine disability. It is intended primarily for physicians and other health professionals.
What information do you need to provide in order to apply for SSDI benefits?
You may need to provide the following information to apply for SSDI benefits:
Why is there a five-month waiting period to receive SSDI benefits?
The waiting period is long enough to permit most disabilities to be corrected or for you to show signs of probable recovery within less than 12 months after the onset of disability.
What does Social Security consider a disability?
Disability under Social Security is based on a person's inability to work. You will be considered disabled if you cannot perform at the same working capacity as you did before, and Social Security decides that you cannot adjust to other work because of your medical condition(s). Your disability must also last or be expected to last for at least one year or to result in death.
Where can I get a list of disabling impairments for Social Security Disability?
You can get a copy of Disability Evaluation Under Social Security ("The Blue Book" 5/02; SSA Publication No. 64-039), which contains the medical criteria Social Security uses to determine disability. It is intended primarily for physicians and other health professionals.
What information do you need to provide in order to apply for SSDI benefits?
You may need to provide the following information to apply for SSDI benefits:
- Social
Security number
- Birth
certificate or other proof of age
- Names,
addresses, and phone numbers of doctors, hospitals, clinics, and
institutions that treated the client, and the dates of treatment
- Names
of all medications being taken
How do you apply for SSDI?
You can apply for disability benefits online at www.socialsecurity.gov/disability, or by calling toll-free, 1-800-772-1213. Social Security representatives can make an appointment for your application to be taken over the telephone or at a local Social Security office.
What is the typical time period to apply for SSDI?
Social Security considers the application filing date to be the day you make an appointment to apply for SSDI. It generally takes approximately 90 days to process a claim for disability benefits. The time may be shorter or longer depending on the amount of information required to make a decision on your claim.
Once you are eligible for SSDI, how long will you be enrolled?
You will continue to receive SSDI benefits as long as you continue to be disabled and meets other eligibility requirements. However, Social Security will periodically review your case to see whether you are still disabled. The frequency of the reviews depends on the expectation of recovery.
You can apply for disability benefits online at www.socialsecurity.gov/disability, or by calling toll-free, 1-800-772-1213. Social Security representatives can make an appointment for your application to be taken over the telephone or at a local Social Security office.
What is the typical time period to apply for SSDI?
Social Security considers the application filing date to be the day you make an appointment to apply for SSDI. It generally takes approximately 90 days to process a claim for disability benefits. The time may be shorter or longer depending on the amount of information required to make a decision on your claim.
Once you are eligible for SSDI, how long will you be enrolled?
You will continue to receive SSDI benefits as long as you continue to be disabled and meets other eligibility requirements. However, Social Security will periodically review your case to see whether you are still disabled. The frequency of the reviews depends on the expectation of recovery.
- If
medical improvement is "expected," your case will be reviewed
within six to 18 months.
- If
medical improvement is "possible," your case will be reviewed in
three years.
- If
medical improvement is "not expected," your case will be reviewed
in seven years.
What about Medicare?
If you qualify for Medicare through disability, Social Security will automatically sign you up for Parts A and B and mail you Medicare card shortly before benefits become effective. You can decline Part B if you want— for example, if you are covered by employer-sponsored health insurance.
For more information please see the following resources:
If you qualify for Medicare through disability, Social Security will automatically sign you up for Parts A and B and mail you Medicare card shortly before benefits become effective. You can decline Part B if you want— for example, if you are covered by employer-sponsored health insurance.
For more information please see the following resources:
- Social Security Disability
- Social Security Disability Help
- Disabling Conditions
- Social Security Disability Tips
