Social Security Disability Insurance: Everything You Need To Know

Society 5 Mins Read Sumona 05 Aug 2022
Social Security Disability Insurance

For many adults, we take our ability to work and provide for our livelihood for granted. As if nothing is going to happen.

Whether we are working 9 to 5 or own a business, we expect ourselves to bring the paycheck at the end of the day till we retire. But unexpected injuries and illness can take away our ability to work and throw a wrench in all plans.

Currently, more than one billion people are living their life with some type of disability. With the increasing chronic illness and aging population, it is expected that this number will only increase.

The World Health Organization states that anyone is likely to experience any minor or major disability in their lifetime. And the problem is that not many of us take the right steps to protect ourselves.

Much like life insurance that offers a safety net for your family members once you pass, Disability insurance offers a safety net for a lost paycheck when you are unable to work. More specifically, with disability insurance, you are liable to have a certain percentage of your paycheck if you are unable to work completely.

So, let’s jump into it and learn more about Social Security Disability Insurance.

What Is Social Security Disability Insurance?

Social Security Disability insurance, in short SSDI, is a program that offers protection for your monthly income.

If you ever get injured and are unable to continue with work because of the disability, you will receive a certain portion of your paycheck for a limited period of time.

This type of insurance coverage is a form of financial security. So that even if you are injured and unable to work for months or years, you will receive something to take care of yourself and your dependents.

How Does Social Security Disability Insurance Work?

Like any other insurance, SSDI works the same. There is a contract between the individual and the insurance company exchanging monthly payments for a benefit.

In the case of SSDI, you will receive a percentage of your monthly income if you suddenly find yourself in a situation where you can’t work because of any injury or disability.

Social Security Disability forms

The SSDI policy will clearly mention the amount you will receive, how long you will receive, and how much you will have to pay to retain the coverage.

Typically, the SSDI policy will offer 40% to 80% of what your income was before the disability. The exact amount will be decided on the type of policy you choose.

How Does Someone Qualify For Social Security Disability

Despite the belief that the nominee can easily fool the insurance company into getting the benefits of Disability insurance, beneficiaries must meet very strict criteria before they can apply for it.

Understand that only 4 out of 10 applicants are usually awarded benefits, and the rest are denied. So, you can understand just how strict the criteria are.

In addition, even if you have qualified for the SSDI benefits, there will be an official regularly coming to keep an update and see how your health is improving. If they see you have recovered enough to get back to work, the benefits can be taken away from you.

Here is how someone can qualify for the SSDI program –

  • One must have worked at least ¼ of their adult lives and have been in a job for 5 years in the last 10 years.
  • The injuries and disability need to be severe, with medical reports stating that the individual won’t be able to work for at least 12 months.
  • Unable to perform substantial work and need help from others.

Only when an individual is able to prove these three things without any hiccups will they be able to file for the insurance claim.

Once the beneficiaries start receiving money, the amount will depend on the type of policies they have applied for. The average benefits via SSDI in 2017 was $1,172.

It is important that you are aware of what to expect from SSDI. It is not similar to other insurances, and the amount you get is based on the severity of your disability.

All applicants for the SSDI are allowed to have a lawyer as their representative at a hearing before an administrative judge.

In this type of case, legal fees are limited by federal law and are usually a certain percentage of what the judge awards back to the plaintiff.

Legal Representation

Experienced lawyers understand the importance of presenting the correct evidence. And the judge’s attention is more focused on the medical-based records and evidence.

The key issue at an administrative hearing is to determine whether or not the claimant is eligible for gainful employment. Administrative judges often rely on the vocational expert who is under the contract of SSDI.

The vocational expert determines whether there are a significant number of jobs available in the national economy that a person with the claimant’s disability can do.

Claimants who do not have a lawyer by their side can’t actually cross-examine the vocational expert. This is where you will find the needed lawyers like Morgan, Collins, Yeast & Salyer by your side.

By exposing gaps in the expert’s knowledge, lawyers can influence the judge that the expert’s opinion doesn’t support the case.

Residual Disability Rider

Social Security Disability Insurance (SSDI) provides crucial financial support to individuals who are unable to work due to a disability, but it often covers only a fraction of their previous income. This is where the concept of a residual disability rider becomes particularly important.

A residual disability rider, typically an addition to private disability insurance policies, can supplement SSDI by providing additional coverage in cases where an individual is able to work in a limited capacity but still suffers a loss in income due to their disability.

This rider ensures that individuals are financially supported even if they are not fully disabled, bridging the gap between their reduced earning capacity and the benefits provided by SSDI. By integrating a residual disability rider into their insurance plan, individuals gain an extra layer of financial security, safeguarding
their livelihood in the event of a partial disability.

Is Disability Insurance Worth It?

Today, one in four Americans have some type of disability. SSDI is a way to safeguard your future and future income when you grow some kind of disability. It provides financial protection to you, and you depend on it when you can no longer work.

If this is not enough for you to know the importance of SSDI, perhaps answering the following questions will help you.

  • Do you have any emergency funds to support yourself in case you can no longer work?
  • Does your employer provide you with disability coverage?
  • Does your disability qualify for a government benefit, and whether they can support you?

If your answer was no to the majority of the questions, it is worthwhile to consider getting an SSDI.

Additionals:

Sumona is a persona, having a colossal interest in writing blogs and other jones of calligraphies. In terms of her professional commitments, she carries out sharing sentient blogs by maintaining top-to-toe SEO aspects. Follow my more contributions in EmblemWealth and Newsstoner

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