If you are considering whether to apply for benefits through the Social Security Disability Insurance (SSDI) program, then you may be wondering, “what are the benefits to being on Social Security Disability?” It’s a valid question since, unfortunately, there is a stigma often associated with “being on disability.” Some people mistakenly believe that receiving disability benefits makes them “less than”, defective, or some type of government “freeloader.” This is wholly inaccurate.
In reality, the SSDI program is funded by payroll taxes that are paid by both employers and workers. This means you are not getting “free money” from the government when you are on Social Security Disability. You paid into the SSDI system through payroll taxes. You earn “credits” based on your total wages and/or self-employment income for the year.
If you are approved for disability benefits, the amount you will receive varies based on your lifetime earnings. In 2024, the average disability benefit was $1,537 per month.
The information below highlights just some of the benefits associated with receiving SSDI benefits.
Benefit: Monthly Income to Help with Necessary Expenses
SSDI provides monthly cash benefits to eligible applicants. Those cash benefits can help cover necessary expenses such as housing, food, transportation, and so forth. These stable, monthly SSDI benefits can mean the difference between someone keeping a roof over their head and being homeless. These benefits also provide an invaluable safety net so they do not fall into poverty.
Benefit: Increased Retirement and Survivors’ Benefits
When your SSDI benefits application is approved, it effectively “freezes” your Social Security earnings record. This is important because it can help when you are age-eligible to collect Social Security benefits. For context, the regulations governing the Social Security program stipulate that any years where someone was “wholly or partially” disabled will be excluded when calculating future benefits. As a result, the amount of your eventual Social Security retirement benefits, your dependents’ benefits, or even subsequent disability or survivors’ benefits, may be calculated at a higher amount because those “lost” working years (and associated zero earnings) will not be considered in future Social Security benefit calculations.
Benefit: Protection from Debt Collectors
If you are in significant debt and have been contacted by debt collectors, you can breathe a sigh of relief in knowing that disability benefits are generally not treated the same as ordinary income for the purposes of debt collection. Specifically, SSDI benefits payments generally enjoy a level of protection from creditors. In addition, some types of debts may be forgiven if you become disabled. Social Security disability benefits are also given special treatment in bankruptcy.
Benefit: Health Coverage Through Medicare
Another major benefit to being on Social Security Disability is vital health coverage. Individuals who receive SSDI benefits for 24 months, regardless of age, may be eligible for health coverage through Medicare, including Part A hospital benefits and Part B medical benefits.
Eligibility for SSDI Benefits
Now that we’ve highlighted some of the potential benefits to being on Social Security Disability, an important question often comes to mind – am I eligible for disability benefits? Generally speaking, to be eligible for SSDI benefits, you need to affirmatively establish that you are disabled. The Social Security Administration (SSA) typically considers the following factors to determine if someone is disabled:
- Your impairment, or impairments, must significantly limit your ability to complete basic work tasks.
- Your impairment, or impairments, must be expected to last for one year or longer.
- Your impairment, or impairments, must meet or exceed all of the requirements on the SSA’s Listing of Impairments, or it must have other factors that meet the criterion of a medical condition on the list;
- You must be unable to engage in any type of work, which will be based on your impairment, age, educational background, prior work experience, and any transferable skills.
If the SSA determines you are disabled based on the provided medical evidence, vocational information, and other documentation, then you may be eligible to receive SSDI benefits.
However, since SSDI is an insurance program funded through payroll taxes, a key factor in determining eligibility is whether you have paid enough into the SSDI program to be eligible for benefits. Generally speaking, an individual needs to earn at least 40 Social Security credits to qualify for disability benefits. Individuals can generally earn up to four credits per year based on wages and/or self-employment income for the year.
While 40 credits is usually the amount necessary to qualify for SSDI benefits, it is important to note that this number may be different for younger applicants. An experienced SSDI benefits lawyer can help in determining if you have sufficient credits to receive SSDI benefits.
If you do not have enough credits to qualify for SSDI benefits, do not wave the white flag of defeat. You may still be eligible to apply for SSI benefits since you do not need to have a work history to be eligible for these benefits.
Determining if you may qualify for Social Security disability benefits can be complicated, particularly when you are already dealing with significant health issues. If you are considering applying for Social Security disability, contact an experienced SSDI lawyer to help you figure out if you are eligible and work with you to file your application.
How Long Do I Have to Be Out of Work Before Applying for SSDI Benefits?
Individuals are generally able to apply for disability benefits if they have been diagnosed with a disability that is expected to last for 12 months or longer, or if it is terminal. Under current rules, you do not have to wait until you have been out of work for a year or longer to apply. If you are, or become, disabled then you can apply for benefits when you are not able to work due to your symptoms.
Have Questions About Applying for Social Security Disability? Speak to an Experienced SSDI Benefits Lawyer Today
If you are considering filing for SSDI benefits and may be feeling overwhelmed or intimidated by the process, reach out to an experienced SSDI benefits lawyer. A knowledgeable SSDI attorney can assist you in putting together the necessary paperwork for your initial application. An SSDI attorney can also help you with an administrative appeal, if necessary. Reach out to Bross & Frankel to talk to a New Jersey SSDI attorney about your potential SSDI claim. Schedule a no-cost claim review with one of our knowledgeable disability attorneys by giving us a call at 856-795-8880 or by filling out our online contact form.