Social Security Disability Insurance, or SSDI, is a payroll tax-funded, federal insurance program. A portion of the FICA taxes you pay are set aside for these benefits (as well as Social Security retirement and Medicare). Established in 1954, this program is designed to provide you with income if you are unable to work because of a disability or until your condition improves, and guarantees income if your condition does not improve. Then, once you meet your retirement age - 65 or older - you move on to Social Security retirement income.
You must have worked and paid into the program (payroll taxes) for five of the last 10 years in order to qualify. Additionally, you must have been disabled before reaching full-retirement age (65-67), and you must meet the Social Security Administration's (SSA) definition of disability.
The SSA's Definition of Disability
The SSA considers people disabled only if they have an inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. This disability has to be so severe as to prevent someone from doing any substantial gainful work. whether a specific job is available or not. The disability must result from a physical or psychological abnormality demonstrable by medically acceptable clinical and laboratory diagnostic techniques.
SSDI Eligibility: What You Need To Know
The SSDI application process is extremely difficult for both those who need benefits and for the SSA to administer for several reasons, including:
a. The average age of someone with a disability is age 52.
b. Over the years, a growing number of disabilities have been acknowledged by the SSA, which has led to an increase in the number of people who qualify for this program.
c. The number of people in the SSA work force has declined, while demands on them have increased.
d. The number of SSDI applicants has skyrocketed in recent years, bringing the total to more than 3 million applications through September 2009, compared to 1.7 million applications for the same period in 2008.
With this recent explosion in SSDI applications, people with disabilities risk longer waits and crucial mistakes with their claims when they file without representation.
SSDI eligibility is based on your inability to work. You generally are considered disabled by the SSA if:
a. You cannot do your previous work; and
b. It is determined that you cannot adjust to other work because of your disability; and
c. Your disability has lasted or is expected to last for at least one year or result in death.
On average, only 36 percent of those who go it alone in the process are awarded at the initial application, according to the SSA. In comparison, 56 percent of applicants with an Allsup representative are awarded at the application level. People with disabilities can receive representation at any level of the SSDI application process, but many choose to go it alone at the beginning, which can carry significant risks.