Does Your Disability Qualify for Financial Benefits?

Disability is a challenge. It can happen to anyone! According to the Social Security Administration, a 20-year-old worker has 1 in 4 chances of becoming disabled before the age of retirement. A study conducted by the Commissioner's Disability Insurance reveals that one out of every eight workers will be disabled for five years or more throughout their career.

Social Security Disability

Underestimating the chances and risks of disability can often result in financial destitution. Social Security Disability is a type of insurance that is offered to the disabled, retired workers and survivors of the deceased workers. It was started in the year 1957.

The aim of this program is to offer financial assistance to individuals who are unable to continue their work because of their disability. A "lawfully" disabled person of any income group can receive the benefits of Social Security Disability. The process and guidelines for claiming these benefits may seem complicated.

Your claim can be approved if it answers the following --

1. Is your medical condition mentioned in the disability impairment list?

2. Are you capable of resuming your previous work?

3. Can you do any other work?

Why Is It Important?

• Increasing Beneficiaries

Industries such as mining, timber and construction have the highest percentage of disability beneficiaries. According to the disabled worker beneficiary data presented by the Social Security Administration, in December 2012 there were over 2.5 million disabled employees receiving disability benefits.

This figure increased to about 8.8 million in December 2013. Approximately 2 million dependent relatives of those disabled workers also benefited from this program. If this factual data were to hold true throughout this year, 16% of the aforesaid $863 billion would probably claim disability benefits in 2014.

• Lack of Savings

The long-term disability claims review published by the Council for Disability Awareness in 2012 mentions that less than 5% of illnesses and disabilities are related to work. This implies that the remaining 95% are not covered in worker’s compensation.

A survey of consumer finances conducted by the Federal Reserve Board in the year 2010 states that 68% of adult Americans do not have savings that can cover them during a medical emergency. In such a scenario, Social Security provides financial support to young workers and their families.

What Are the Benefits?

• Medical Benefits

After accepting Social Security benefits for 2 years, the recipient is eligible for a national social insurance program called Medicare. Medicare includes hospital insurance, medical insurance and also covers many prescription drugs. The eligibility for Medicare is generally measured from the date of eligibility for receiving the benefits of Social Security Disability, which is 6 months after the onset of a disability.

If a person receives the benefits of Social Security Disability, he may also benefit under the Consolidated Omnibus Budget Reconciliation Act (COBRA) from 18 to 29 months.

• No Loss of Other Benefits

Social Security offers regular monthly imbursement. It supplements any existing disability benefits. It also covers the rise in the annual cost of living. Some portion of these benefits may be exempted from tax.

During the period of disability, Social Security Disability prerogative halts the Social Security Earnings Records. Thus, reduction in earnings will not affect the retirement benefits.

If the disability is incapacitating and going to last for life then you can receive the benefits until the age of retirement.

• Benefits for Family

A person getting the benefits of Social Security Disability may have an adopted child or in some cases a grandchild or a stepchild as dependent. This child must be under the age of 18.

A spouse is also eligible to receive the benefits. The age of the spouse must be 62 or more. In other cases, the spouse should be caring a child of the disabled worker. This child should be younger than 16 years or should be disabled.

The benefits of a deceased or retired disabled parent can be compensated to his unmarried child.

What Is the Eligibility Criteria?

The factors to evaluate the eligibility are –

1. Employment status

2. Severity of medical condition

3. Impairment listing on disabling impairments list

4. Ability to work as previously

5. Availability of other work on the basis of education, skills and the age

• Type of Work

To qualify for the benefits of Social Security Disability, you must have worked in jobs which are enclosed by Social Security. Further, to receive the benefits of Social Security Disability you should be under the age of 65 with an extended work record. A person receiving more than $1,070 per month through work will not qualify for these benefits.

• Type of Disability

Essentially, your disability should prevent you from engaging in any substantial gainful activity or expect to prevent you from doing so, for at least one year or until the time of death. Furthermore, after the disability is established there is a waiting period of 5 months before the Social Security Disability benefits begin.

Remember, partial disability or short-term disability (i.e. one that would last less than 12 months) is not considered for such benefits.

• Social Security Credits

Additionally, you should have 40 Social Security credits (i.e. 4 credits per year) accumulated over the past 10 years, specifically before the onset of the disability.

• Duration of Work

For Individuals who were disabled before or at the age of 20, the type and the duration of work prior to the claim are the determining factors. Individuals between the age of 24 and 31 are required to work from the age of 21 to half the time until the quarter of their disability. Those exceeding the age of 31 must have worked for five years prior to the disability claim.

While those who become disabled before the age of 28 generally need to have worked for only 18 months to qualify.

Keep Moving

If you are disabled, you are entitled to receive benefits. Forge ahead and do not get daunted with the complications of your disability.

If mobility discourages you to step out then equip yourself with an innovative folding scooter or a mobility scooter. These scooters can make transportation easy and comfortable. Move around and you will know that disability has not altered your life.

Always remember, Social Security Disability provides a person an opportunity to return to work while still paying them financial benefits.