How Does Social Security Pay for Total Disability?

In order to begin receiving benefits as a participant in the Social Security Disability Insurance program you have to submit an application for benefits which must include detailed medical documentation of your disability.  There are no benefits for partial disabilities or short-term disabilities. 

SSDI Definition of Disabled

An applicant must meet the SSDI’s definition of a long term or total disability to be eligible for benefits.

• An applicant can show he cannot perform his work as before
• Social Security must find that he cannot adjust to other work due to medical conditions
• The impairment has lasted or is expected to last for at least one year or result in death

Four Work Credits Needed to Be Insured by the SSDI Program

After meeting the definition of disabled to participate in the SSDI program, an applicant would then need to have accumulated the required amount of work credits need to be eligible for benefits.  The work credits needed are based on an applicant’s total yearly wages with an employer.  However, if an applicant has been self employed, he may still be eligible to participate in the SSDI program and the work credits will be tallied based on his self-employment earnings.  Individuals can earn up to four credits each year.  The amount of work credits required by SSDI changes from year to year, but basically when a person has earned $1,120 in wages or self-employment he will have one work credit.  When he earns $4,480 in wages he will have earned the four yearly work credits needed to be considered insured by the SSDI program regardless of how high his actual earnings totals are.  Nobody can earn more than four credits in one year.

Benefit Amount Based on Average Earning Amounts

During a worker’s lifetime he will have earned more than the minimum required to be insured under the SSDI program.  Pension payments, interest on dividends paid out on savings and investment accounts are not considered earnings for the purposes of SSDI because no Social Security tax is paid on those income sources.  The applicant’s average earnings over his working years will be used to determine his benefit amount or what his monthly benefit payment will be.

Getting Legal Help

If you or a member of your family is considering applying for Social Security Disability Insurance based on a disability it may be helpful to consult with a disability lawyer.  An attorney can provide valuable guidance of the application process and how a worker’s average yearly earnings are used to determine his monthly benefit amounts.