Why You Want Social Security Disability Insurance (SSDI)
As you learn more about Social Security Disability Insurance (SSDI), you'll find there are a number of other powerful and important financial and healthcare benefits that will be available to you.
The Benefits of SSDI:
- Regular Monthly Income:
SSDI is a regular monthly payment and provides annual cost-of-living increases. A portion of these Social Security disability benefits may be tax free.
- Medical Benefits:
Regardless of your age, 24 months after your date of entitlement to SSDI benefits, you are eligible for Medicare, including Part A (hospital benefits) and Part B (medical benefits). A variety of Medicare Advantage plans are also available to you.
- Prescription Drug Coverage:
Once you are entitled to Medicare, you are also eligible for Medicare Part D, the prescription drug plan.
- Cost-of-living adjustment (COLA):
You can benefit from an annual increase in your monthly benefit known as the cost-of-living adjustment, or COLA. This increase is designed to help protect your benefits against inflation.
- COBRA Extension:
If you receive SSDI benefits, the length of your COBRA benefits could be extended an additional 11 months.
- Long-Term Disability (LTD) Benefits:
If you have private long-term disability insurance, your provider will often require you to seek SSDI. Complying with this requirement could help protect your ability to receive LTD income.
- Protected Retirement Benefits:
When you reach retirement age, SSDI ends and you transition to Social Security retirement benefits. Social Security disability entitlement "freezes" Social Security earnings records during your period of disability. Because the years in which you collect SSDI benefits are not counted when computing future benefits, your Social Security retirement benefits may be higher than if your earnings were averaged over a greater number of years.
- Dependent Benefits:
If you receive SSDI benefits and you have a dependent under age 18, he or she may also be eligible for benefits.
- Return-to-Work Incentives:
Social Security will provide you opportunities to return to work while still paying you disability benefits.