For those who used to but can no longer work due to a disability, a significant concern is how their income will be replaced. When an individual is unable to sustain “meaningful gainful employment,” that is, the ability to work at any job 40 hours per week, there may be financial assistance available to them through Social Security.
Eligibility
To become eligible for Social Security Disability Income or SSDI, individuals must have worked and paid into Social Security for 40 quarters (or earn 40 credits). The Social Security Administration (SSA) also must determine your disability status. You can earn four credits at a maximum per year and at least 20 of the 40 credits should be earned in the last 10 years. Monthly payments are dependent on lifetime earnings. You can read more about the work requirements here.
The SSA has an extensive review process for all disability eligibility. A full list of qualifying impairments can be found here. It is important that you have received medical care and that your physician(s) have documented the extent of your disability and its impact on your ability to work. After the review process, the final decision will be sent in a letter which will also include the benefit amount. This award letter is a very important document that you may need to reference for other benefits. Keep it in a safe place and if possible scan it and save it electronically as well.
If you are determined to be disabled but haven’t paid into Social Security for the required 40 quarters, you may be eligible for Social Security Income (SSI), a monthly payment for low-income disabled individuals. Individuals who qualify for SSI are also qualified for Medicaid health coverage.
If your disability isn’t approved for SSDI or SSI, there is an appeal process if you do not agree with the decision. Many individuals will work with attorneys that specialize in Social Security disability appeals if the initial application is denied and the individual is still unable to work.
Distributions
Once you have been determined to be disabled, there is a five-month waiting period after the date your disability began before SSDI payments begin. The average monthly SSDI payment is $1,364 (as of Nov 2022) although you can get an estimate of what you’ll receive with this online calculator. Spouses and dependents of disabled family members may also receive benefits.
SSDI with Medicare
SSDI recipients automatically qualify for Medicare Part A and Part B 24 months after the date they last worked, which is referred to as their disability date. Part A will be free and covers care when you are admitted to the hospital. Part B is dependent on income and generally covers all other medical services and care. There is no waiting period for Medicare for those who have Amyotrophic Lateral Sclerosis (ALS) or End-Stage Renal Disease once you start dialysis. You may be eligible for Medicare as soon as Social Security begins SSDI payments.
To apply for disability, you may visit the SSA website, call +1 (800) 772-1213 (TTY number: +1 (800) 325-0778), or visit your local Social Security office.
Extra Learning:
SSI vs. SSDI: the Differences, Benefits, and How to Apply | National Council on Aging
Medicare Coverage for People with Disabilities | Center for Medicare Advocacy
Last Revised March 9th, 2023
