Five Reasons To Apply For SSDI
Like many Americans, you’ve become so ill or injured that you can no longer work.
What do you do now? You’ve heard about Social Security Disability Insurance (SSDI). But you don’t know much about it, other than it’s like many federal government programs: it can be a big hassle and it’s a lengthy, complicated process. This is where a representative can make a difference.
The average SSDI monthly payment is $1,197. That sounds OK, but is it worth the hassle? Why even apply? Besides the obvious fact that SSDI is critical disability insurance that you paid for while working, there are several reasons to apply for SSDI.
Here are five of them:
Regular Monthly Income
You’ll find income deposited by Social Security into your bank account every month. There also may be the option to receive additional dependent benefits as well, if you have a dependent at home.
Generally, your SSDI payment grows a little bit more each year because of the cost-of-living adjustment, or COLA. This adjustment is the same one applied to Social Security retirement benefits and other federal benefits.
You are automatically entitled to receive Medicare health insurance benefits 24 months after you begin receiving SSDI cash benefits.
The length of your COBRA benefits could be extended another 11 months.
Protected Retirement Benefits
This is a big one. Your SSDI benefits stop when you reach full retirement age (65-67) and you start receiving your retirement benefits. When you receive approval for SSDI, then Social Security freezes your earnings record. Those zero-earning years aren’t used in the calculation of your monthly retirement benefit. As a result, your retirement check may be significantly higher than if your earnings were averaged over a greater number of years, including those during which you could not work.
Long-Term Disability Benefit Protection
Your long-term disability LTD insurance carrier may require you to apply for SSDI if you can no longer work. Doing so may help protect your LTD income. Also, some LTD plans limit the duration of your coverage, based on the type of disability you have or your ability to perform work other than your most recent job.