An Overview of Social Security Disability Insurance

Two programs are being enacted by the federalacquired a disability and can no longer work at all or
government, which provides benefits for individuals withhold down his/her present work, provided that he / she
disability. Collectively, these programs are beinghas remitted adequate FICA taxes.
referred to as "Social Security disability benefits."Under the SSDI, different kinds of benefits are
- Social Security Disability Insurance Benefits Programprovided for family members when their major wage
or SSDI Benefits - authorized by the Social Securityearner have acquired a disability or died.
Act, Title II and is geared towards providing benefits toThe SSDI program is being financed by the Social
workers with disability and / or their dependents andSecurity taxes being paid by employees, employers
surviving spouses or children.and self-employed individuals. SSDI benefits can be
- Supplemental Security Income program or SSI -paid to workers with disability, widows or widowers,
authorized by the Social Security Act, Title XVI andand children or disabled since childhood adults if they
aimed at giving benefits to individuals with disabilityare eligible.
whose assets and income are below a particular level.Availing SSDI benefits
History of Social Security Disability Insurance (SSDI)The Social Security has a particular definition of
Benefitsdisability that need to be met in order to become
It was in the year 1935 when the U.S. federaleligible to receive SSDI benefits. The main requirement
government set up a program geared towardsto gain medical eligibility under the SSDI program is the
providing elderly employees of commercial andinability by an individual to perform any kind of
industrial sectors with retirement benefits. The schemeSubstantial Gainful Activity or SGA for 12 months or
of this program is enacted through the Federalmore.
Insurance Contributions Act or FICA, setting up aThis medical definition of disability is also the
federal retirement fund that the employees arerequirements used to become eligible under the
required to pay into. The employees remit into this fundSupplemental Security Income (SSI) program.
through a regular deduction on their salary.Determining disability
It is the Social Security and the Medicare programsThe person with disability should have been unable to
that are funded after the withdrawal of FICA tax fromperform SGA due to an impairment affecting the
the employees' salaries. Meanwhile, self-employedphysical or mental capacity and is medically
citizens can contribute to the FICA because of thedeterminable. The impairment can also either be
federal tax returns.expected to last continuously for at least 12 months or
By 1956, some protection policies covering theresult in death.
"involuntary retirement" options on the basis of disabilityReceiving benefits
were established. An individual, even if he / she hasAfter meeting the requirements given by the disability
been forced to stop working because of a disabilityevaluation and the disability is already proven, the
may still have access to the disability insurance. Itpayments of SSDI benefits will commence. The
would depend, however, on the period he / she havebeneficiary needs to wait for a period of 5 months
paid FICA taxes.since it is during the sixth month after the disability
Objectives of SSDIbegan that benefits payment start. It will continue up to
The main objective of the SSDI is to replace thethe second month's end of the disability.
regular income being received by people who have