A disability can restrict a person’s ability to work, sometimes several years before they reach retirement age, negatively impacting their financial status. To help such individuals, Social Security Disability Insurance (SSDI), a social insurance program, allows them to earn coverage for benefits by working and paying Social Security taxes on their earnings. However, before applying for SSDI benefits, there are certain important things to remember, such as the eligibility criteria and the application process.

The types of qualifying disabilities

The list of conditions that qualify for disability benefits may differ based on various circumstances. For instance, an individual with a spinal injury or a diagnosis of terminal cancer will be considered disabled. The Social Security Administration maintains an impairment listing known as the Blue Book. It contains mental and physical impairments that may automatically qualify one for SSDI benefits – on the condition that the applicant meets the specified criteria for a listing.

The 100% disability criteria

The SSDI program is a total disability program for people who are 100% disabled. An applicant must provide evidence that proves their condition is severe enough to render them unable to return to work for at least one year. Though one might feel they are disabled, if they can return to work in less than a year, the SSA may deny the claim. For instance, individuals with a hip or knee replacement may not qualify for SSDI unless they suffer from unusual complications from the procedure.

Available benefits

SSDI is a cash benefit paid to eligible disabled working individuals and their family members. If one is eligible for SSDI benefits, the amount they get will be based on their past earnings. The monthly benefit can be anywhere between $100 and $3,822 as of this year. Notably, most people who qualified for disability benefits received between $800 and $1,800 per month, with an average individual SSDI benefit standing at $1,537. While the benefit isn’t an income-based initiative, the amount of disability benefit could be reduced if one is collecting workers’ compensation or temporary state disability. On the contrary, receiving veterans benefits, private disability insurance payments, and Supplemental Security Income (SSI) will not reduce one’s SSDI benefit amount.

Required credits

As of 2024, an individual earns one work credit for every $1,730 earned annually, with a cap of four credits, respectively. Only the earnings one paid Social Security tax on count toward the total. The amount of work credits one requires to qualify for SSDI benefits depends on the age when one becomes disabled. For instance, people who become disabled at 50 years old will need 28 work credits or to have worked for seven years to be eligible for disability benefits. If one has not worked long enough to qualify and has low income and assets, they could apply for Supplemental Security Income (SSI) instead. One should check with a healthcare professional or concerned governing body in their area for all the relevant details associated with Social Security disability insurance benefits.