One option that injured workers sometimes have is to claim benefits through Social Security Disability Insurance (SSDI). This is different than other benefits in a few key ways, one of which is the relatively narrow scope of the qualifying injuries. Another difference is how long that disability is expected to last.
How long a disability has to last for SSDI benefits
What is Retirement, Survivors & Disability Insurance?
The Social Security Administration (SSA) administers the Retirement, Survivors and Disability Insurance (RSDI) program. A portion of an individual's earnings or payroll taxes fund gets withdrawn from their paycheck. The SSA divides these funds among applicants depending on whether they meet eligibility requirements.
Should you worry about proposed cuts to Social Security?
The newest federal budget proposal, once again, takes aim at Social Security reform.
When income ends, RSDI may help
For years, your family has lived off of your spouse's income. Then, suddenly, that income ends. Your spouse suffers an injury or contracts an illness that leaves them disabled.
Primary Insurance Amount
Social Security Disability applicants frequently want to know how much they will be paid when they win their case. The amount of money received through the Social Security Disability Insurance program depends on how much you have paid into the Social Security Trust Fund. Your annual statements from Social Security Administration will typically state what your estimated payments will be, though these calculations are also available upon request. Payment under Title II, called primary insurance amount (PIA), is based on your average indexed monthly earnings (AIME). AIME is calculated by adding your highest 35 years of earnings, divided by the number of months (420) in 35 years. This figure is plugged into a formula which includes an upper bend point and a lower bend point, as well as a percentage of your AIME in excess of the upper bend point (http://www.ssa.gov/oact/cola/bendpoints.html). So, the more you put into the system over the years, the more you can collect.
Bill Would Let Disabled Military Children Receive SSD, Survivor Benefits
A Virginia Congressman, Jim Moran, has introduced a bill that would allow severely disabled military children to receive survivor benefits without losing Social Security Disability (SSD). If passed, the bill would help families with special needs children pay the immense health care costs they face - some families pay more than $100,000 per year.
The Rise in SSDI Claims
Recently, there have been many news stories about the rise in Social Security Disability (SSDI) claims. Many of these stories are critical of the SSDI system.
Considering Disability Insurance in Addition to SSDI
Many people insure their homes from fire and their cars from accidents, yet few people take the time to consider disability insurance. However, your chances of becoming disabled during your working lifetime are greater than the chances that your house will burn down. According to the Social Security Administration, a 20-year-old has a 30 percent chance of becoming disabled before he or she is able to retire. And approximately 12 percent of Americans are currently disabled.
