Becoming disabled before retirement can be a huge financial blow. Along with having to cope with medical bills and lost income, Northwestern Mutual states that a two-year disability at age 50 can reduce total investment accumulation by 30% at the time of retirement. The Social Security Administration (SSA) says that three out of each and every ten workers will end up too disabled to work before they reach retirement age. Further, 7.8 million people received Social Security disability benefits this past year based on SSA in its publication "Workers Insured for Social Security Benefits, 2010." For most of us, understanding that SSA provides disability benefits is really a comfort. Few of us, however, know who's covered, how this safety net is funded, or how to utilize for benefits if we truly need assistance.
Where do disability benefits result from? Disability benefits are paid by SSA from two similar sources, SSDI and SSI. In general, if you have worked and paid into the Social Security system for the necessary number of quarters and are suffering from a severe disability that prevents you from working, you can apply for SSDI benefits. You spend "premiums" for national disability coverage with every paycheck earned over your working life. However, when you have not worked for a long time, your "coverage" can lapse. If it does, so long as qualify for SSDI and must apply for SSI.
SSI covers individuals that are not covered by SSDI, such as for instance severely disabled individuals who simply cannot work, young people who did not work good enough prior to the onset of these disability to qualify for SSDI, and individuals who stopped working for reasons uknown and allowed their coverage to lapse before applying for disability benefits. SSDI and SSI make payments to individuals who have not yet reached retirement age. After retirement, payments are continued under Old Age, Survivors, and Disability Insurance (OASDI).
How is Social Security funded? According to SSA, most Social Security funds originate from payroll taxes paid by employers and employees. Additional income comes from interest earned by the Social Security trust funds and from an income tax paid by about one-third of beneficiaries on their Social Security benefits. In 2009, the 2 Old-Age and Survivors Insurance and Disability Insurance Trust Funds collected $807.5 billion in revenues, meaning that at this time, Social Security is investing in itself.
In order to apply for disability benefits, you should present medical records and a medical history giving a diagnosis of one's condition and demonstrating that you will struggle to earn a full time income for at least 12 months or that your condition is expected to result in death. 75% of applicants are rejected at their initial hearing. 90% of applicants are rejected at their first appeals hearing.
While it is permissible to represent yourself at these hearings, it's often not as stressful and success is much more likely in the event that you allow a skilled Social Security disability lawyer or other knowledgeable professional to aid you in preparing and presenting your disability case.
Regardless of the hurdles to receiving disability benefits, most Americans are grateful it exists and don't realize why it is being questioned. Reasons include the fact that more and more Americans are reaching retirement, qualifying for Social vaclaimsinsider.com
Security, and are living much longer lives than people did 60 years ago. There are also many more disability claims as the people ages. Finally, the national deficit is increasing at an alarming rate, and our representatives are seeking ways to trim the budget to cover that debt.
Almost 20% of the national budget is allocated to Social Security, which makes it a high-profile target for budget cuts. There is no question that the federal budget should be cut. The issue is things to cut and who it will affect. We cannot help but hope that Congress will not flip the bill upon those among us with minimal methods to cope.
Where do disability benefits result from? Disability benefits are paid by SSA from two similar sources, SSDI and SSI. In general, if you have worked and paid into the Social Security system for the necessary number of quarters and are suffering from a severe disability that prevents you from working, you can apply for SSDI benefits. You spend "premiums" for national disability coverage with every paycheck earned over your working life. However, when you have not worked for a long time, your "coverage" can lapse. If it does, so long as qualify for SSDI and must apply for SSI.
SSI covers individuals that are not covered by SSDI, such as for instance severely disabled individuals who simply cannot work, young people who did not work good enough prior to the onset of these disability to qualify for SSDI, and individuals who stopped working for reasons uknown and allowed their coverage to lapse before applying for disability benefits. SSDI and SSI make payments to individuals who have not yet reached retirement age. After retirement, payments are continued under Old Age, Survivors, and Disability Insurance (OASDI).
How is Social Security funded? According to SSA, most Social Security funds originate from payroll taxes paid by employers and employees. Additional income comes from interest earned by the Social Security trust funds and from an income tax paid by about one-third of beneficiaries on their Social Security benefits. In 2009, the 2 Old-Age and Survivors Insurance and Disability Insurance Trust Funds collected $807.5 billion in revenues, meaning that at this time, Social Security is investing in itself.
In order to apply for disability benefits, you should present medical records and a medical history giving a diagnosis of one's condition and demonstrating that you will struggle to earn a full time income for at least 12 months or that your condition is expected to result in death. 75% of applicants are rejected at their initial hearing. 90% of applicants are rejected at their first appeals hearing.
While it is permissible to represent yourself at these hearings, it's often not as stressful and success is much more likely in the event that you allow a skilled Social Security disability lawyer or other knowledgeable professional to aid you in preparing and presenting your disability case.
Regardless of the hurdles to receiving disability benefits, most Americans are grateful it exists and don't realize why it is being questioned. Reasons include the fact that more and more Americans are reaching retirement, qualifying for Social vaclaimsinsider.com
Almost 20% of the national budget is allocated to Social Security, which makes it a high-profile target for budget cuts. There is no question that the federal budget should be cut. The issue is things to cut and who it will affect. We cannot help but hope that Congress will not flip the bill upon those among us with minimal methods to cope.
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