Getting an
SSDI award means once again having a regular monthly income coming in (with annual cost of living increases, too). A few important issues you will need to consider include:
1. Learning about the financial benefits of receiving SSDI benefits
2. Deciding how to receive your SSDI benefits
SSDI and Your Financial Benefits
In many cases, due to the backlog of SSDI cases pending a decision by the Social Security Administration, you will receive a large one-time lump sum payment initially. This represents your retroactive SSDI payments for previous months from the date of your eligibility as determined by the Social Security Administration.
Example (see box below): On July 30, 2009, Jane Doe receives notification that she was awarded $1,000 per month in SSDI benefits. Her date of entitlement is determined as May 29, 2008. She receives a lump-sum retroactive SSDI payment of $13,000.
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Customer:
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Jane Doe
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Award Received:
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13 months after becoming eligible
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Monthly Benefit:
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$1,000
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Retroactive Benefits Received:
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$13,000 (13 months x $1,000)
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Future annual Benefits:
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$12,000 (plus any cost-of-living increases)
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You will want to use this money wisely as well as keep in mind the
fees you incurred if you used an SSDI representative such as Allsup and the
taxation of your lump-sum.
Qualifying for SSDI also may include the following benefits:
- Eligibility for Medicare;
- Possible extension of COBRA benefits;
- Potentially higher retirement benefits when you turn retirement age due to the earnings record freeze during the period of disability;
- Dependent benefits for children under 18; and
- Return to work incentives allowing limited employment without reduction of SSDI payments.
SSDI Benefit Payment Options
As you begin planning for the day you finally begin receiving your SSDI benefits, you have an important decision to make regarding how to receive your monthly SSDI benefits.
You have three options:
1. Direct deposit
2. Debit card
3. Paper check
SSDI recipients are encouraged to review the pros and cons of all three options. Allsup provides additional information on your
SSDI benefit payment options.