Social Security Disability Insurance, or SSDI, is a federal insurance program funded by payroll taxes. This program is designed to provide people who cannot work due to a severe disability with income until their condition improves or indefinitely if the condition does not improve.
Many people are unaware of the advantages. These benefits include regular monthly income, Medicare eligibility including access to medical and prescription drug coverage, possible COBRA extension, protected retirement benefits, dependent coverage, and return-to-work incentives. With these SSDI benefits, those who are unable to work can rest a little easier knowing that they'll be receiving disability insurance to help cover their living and medical expenses. If you have a severe disability and are unable to work, read on to find out more about this insurance and the many advantages that can come as a result of qualifying for the program.
Monthly Income
One of the biggest advantages is that those who are qualified receive a regular monthly income that has annual cost-of-living increases. Additionally, a portion of these benefits may be tax-free.
Medical And Prescription Drug Coverage
There are many medical benefits that come with qualifying for Social Security Disability Insurance. No matter how old you are, 24 months after you begin receiving cash benefits, you become eligible for Medicare, which includes both Medicare Parts A and B.
Medicare Part A is hospital insurance, which covers hospitalization, home health care, limited skilled nursing facility care and hospice care. Medicare Part B is medical insurance, which includes benefits such as doctors' services, outpatient services, clinical laboratory services and more.
Additionally, a variety of Medicare Advantage Plans are available. These plans may offer additional benefits and prescription drug coverage as well. Once you're entitled to Medicare, you also are eligible for Medicare Part D, or prescription drug coverage.
If you qualify, the length of your COBRA benefits also may be extended. COBRA allows you and your dependents to keep your workplace's group health plan for 18 months after your employment ends, but recipients may receive coverage for an additional 11 months.
Long-Term Disability (LTD) Coverage
If you already have private long-term disability insurance, your insurance provider often will require you to obtain SSDI. This will help protect your ability to receive long-term disability income.
Additional Advantages
You also get protected retirement benefits, dependent benefits, and return-to-work incentives. As for protected retirement benefits - when you reach your full retirement age, which is between 65 and 67, coverage ends and those receiving it transition to receiving Social Security retirement benefits. Disability entitlement "freezes" Social Security earnings records while you receive SSDI. This means that the years in which you collect disability benefits are not counted when calculating future benefits. In essence, your retirement benefits may be higher than if your earnings were averaged over a greater number of years.
When it comes to dependent benefits, those eligible for benefits may be able to extend coverage to their children. If you're receiving SSDI and you have a dependent under age 18, he or she may be able to receive benefits. Additionally, for those who may be able to go back to work, Social Security provides an incentive to return to work. By offering you opportunities to return to work while still receiving disability, you can receive the money you need while easing back into the working world and getting on your feet again.
There are many advantages to qualifying for Social Security Disability Insurance. If you have a disability that prevents you from working, speak with a professional representative about receiving a free evaluation to determine if you qualify.