What is SSDI?
Social Security Disability Insurance
Social Security Disability Insurance (SSDI) is an insurance program administered by the Social Security Administration. SSDI is a wage replacement program which will provide benefits to family members if a primary wage earner becomes disabled. Currently over 6.7 million people are receiving Social Security Disability Benefits. This means approximately 2.9 million men and 2.2 million women are disabled and are unable to work. Up to two thirds of the disabled workers receiving Social Security Disability Insurance are age 50 or older. Many of the individuals receiving the SSDI benefits are dependent family members.
The Federal Insurance Contributions Act (FICA) requires all employees to contribute to a federal retirement fund. This money is currently used to pay for all Medicare and Social Security programs. In 1956, The Social Security Disability Insurance program was established and is financed by FICA taxes. This program provides protection and funds to individuals who are unable to work due to a disability. In addition, widows, widowers, and children of the disabled worker may also qualify to receive funds.
Many people feel they are entitled to disability benefits, however, to qualify for Social Security Disability you must be meet several requirements outlined by the Social Security Disability Administration:
- You must meet the definition of disabled as defined by the Social Security Administration
- You must have paid payroll taxes and worked for the last 10 years if you are 31 years old or older
- You must have become disabled prior to your full retirement age
- You must be a United States citizen or have permission to work in the United States
If the Social Security Disability Administration decides a worker has become so disabled they can not work in their job or be trained to perform another job they may be able to receive a monthly cash benefit. The disability must be expected to last at least 12 months or result in death. The cash benefit will continue until they die or they are able to work again. The income limitation of the individual must be less the $900.00 a month in 2007. However, each January the qualifying amount may be updated.
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