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Social Security Disability Income Benefit Facts

Social Security Disability Insurance and Supplemental Security Income programs are the largest of several federal programs that provide assistance to people with disabilities; though 26% of adults in the U.S. have some form of disability, very little is known about these programs.

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    Social Security Disability Income Benefit Facts

    Social Security Disability Income Benefit Facts

    Social Security Disability Insurance and Supplemental Security Income programs are the largest of several federal programs that provide assistance to people with disabilities; though 26% of adults in the U.S. have some form of disability, very little is known about these programs.1

    Here are 10 important facts that all Americans should know about these two important programs.

    1. Qualifying for federal disability benefits is very difficult. In fact, according to the Social Security Administration (SSA), the percentage of applicants awarded benefits at the initial claims level averaged just 21% between 2010-2019. Following reconsideration and hearing levels, an additional 2% and 8%, respectively, were awarded benefits. This translates into a 67% average decline rate.2
    2. The difference between the two programs is that the Social Security Disability Insurance (SSDI) program may pay benefits to an individual and certain members of an individual’s family if that individual worked long enough and paid Social Security taxes. The Supplemental Security Income (SSI) program pays benefits on the basis of financial need.
    3. Benefits are paid to people who are unable to work for a year or more because of a disability. Generally, there is a five-month waiting period before the first benefit is paid.
    4. If the SSA decides you can do any other work, then they will find a qualifying disability is not present. This may be one major reason for the high applicant rejection rate.
    5. Surviving spouses or surviving divorce spouses may be eligible for benefits if they are between the ages of 50 and 60 and have a condition that meets SSA’s definition of disability.
    6. The average SSDI benefit amount is $1,688/month, while the average monthly benefit for SSI is $622.3 This modest benefit may be the best argument for owning a personal disability insurance policy.
    7. It’s possible to receive both SSI and SSDI benefits, provided the individual has a work history and limited income/resources.
    8. Children under age 18 may be eligible to receive SSI if they meet the SSA’s definition of disability for children, and the household has limited income/resources.
    9. SSDI pays benefits to adults who have a disability that began before they reached age 22. The SSA considers it a “child’s” benefit since it’s paid under the parent’s Social Security earnings record.
    10. The SSA offers a free Benefit Eligibility Screening Tool to help individuals determine what Social Security benefits they may be eligible to receive.

    Sources:

    1. https://www.cdc.gov/ncbddd/disabilityandhealth/infographic-disability-impacts-all.html#:~:text=Up%20to%201%20in%204,have%20some%20type%20of%20disability.
    2. https://www.ssa.gov/policy/docs/statcomps/di_asr/2020/sect04.html
    3. https://ncoa.org/article/ssi-vs-ssdi-what-are-these-benefits-how-they-differ

    Please reference disclosures at: https://blog.americanportfolios.com/disclosures/

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    Director of Insurance Products 
    631.439.4600, ext. 177 

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