How to Apply To Social Security Disability Insurance Online

Sometimes, life throws you a curveball, whether it’s an accident, illness, or unforeseen disability. In situations like these, social security disability insurance can come in handy – allowing you to keep up-to-date on your daily living expenses, even if you are out of work.

Keep reading to learn more about social security disability insurance and how to apply for it online.

Understanding Social Security Disability Insurance (SSDI)

Social Security Disability Insurance, also known as SSDI, pays monthly benefits to workers who cannot work anymore due to a severe illness or disability expected to last a year, or result in death. This insurance is part of the larger Social Security program, which pays out retirement income to most retired Americans.

The benefits you receive are based on your past earnings, and then paid to you or your dependent family. In order to be eligible for SSDI, you must have worked in jobs covered by Social Security.

Why is SSDI Important?

Did you know that a young person starting their career has a 1 in 3 chance of qualifying for SSDI before reaching Social Security age? This government program is incredibly important to millions of current workers and future workers – currently, about 7.3 million people receive disabled-worker benefits from SSDI.

The risk of disability increases as we age, which is why people are more than twice as likely to receive SSDI benefits at the age of 50 than at age 40. Believe it or not, you’re also more than twice as likely to receive SSDI benefits at age 60 than 50!

As people age, their risk of disabling conditions increases, and many factors contribute to this. Stroke and dementia primarily impact older people, while degenerative diseases like ALS or multiple sclerosis, actually worsen over time. Not to mention, many people work in physically demanding jobs, and as they age, working in these jobs becomes much more difficult, sometimes even leading to musculoskeletal conditions or disabling injuries.

For example, let’s say you have a parent who gets diagnosed with dementia, but they aren’t yet retired. Because of their diagnosis, they are mentally unfit to work at their current job – what happens next? With a dementia disability living allowance through SSDI, your parent can still have a bit of help paying their bills without being entirely reliant on you to support them financially.

How Much is the Disability Benefit?

The SSDI benefit is dependent on a worker’s previous income before they became disabled. The formula measures your average earnings from the jobs in which you paid social security tax, and likewise, excludes income in which you did not pay social security taxes.

The Social Security administration will adjust your past earnings for inflation, then calculate the average of 35 of your highest earning years. It then applies “bend-point” percentages to portions of your average earnings. The total for each bend point is added, calculating your primary insurance amount, or PIA.

In 2024, the bend point amounts are 90% of your first $1,174, 32% of any amount between $1,174 and $7,078, and 15% of any earnings above $7,078.

Who Pays for Disability Insurance Benefits?

Employers and workers pay for SSDI through their wages as part of their social security taxes. Both employers and employees pay a 6.2% tax of their earnings – capped at $168,600 in 2024. The cap is regularly adjusted to keep up with average wages.

Of this 6.2% tax, 5.015% goes toward Social Security retirement and survivor benefits, while 1.185% is allocated toward disability insurance.

Who is Eligible for Disability Insurance?

The requirements for SSDI are extremely strict – in fact, most applicants are rejected. To be eligible for SSDI, Social Security law states that you must be “unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or is expected to last for a continuous period of at least 12 months.”

In other words, you must:

Be insured for disability benefits. Basically, this means you need to have worked for at least ¼ of your adult life, and five of the past ten years.
Have a medically determinable mental or physical impairment that is expected to last at least a year or result in death. This is based on clinical findings by reputable medical sources.
Be unable to perform “substantial gainful activity” anywhere in the economy, regardless if this work exists in the area where you reside, if you would be hired, or if a job vacancy even exists. In 2024, the substantial gainful activity amount is capped at $1,550 per month, and $2,590 if blind. This means that if you earn more than this, you will not qualify for SSDI.

Passive income from investments does not count as “substantial gainful activity.” The activity must be work that requires a large amount of physical or mental activity, with the intention of earning money.

For older and more severely impacted adults, low skills and lack of education is factored in, but not for younger applicants.

You can expect a five-month waiting period before receiving benefits. For example, if you were injured in January, you would not receive benefits until July. While you wait, you may be eligible for Supplemental Security Income if you have little or no assets or income.

Common Disabilities for DI recipients

Many recipients of SSDI have multiple disabilities. In 2014, there were 9 million people who received SSDI benefits – 31% had a mental condition as their primary impairment. For 32% of disabled workers, 32% had a musculoskeletal condition, like arthritis and back injuries.

Around 9% also had nervous system impairments, while 8% had circulatory system conditions. The last 20% had several different impairments, like cancer, diabetes, injuries, and infectious diseases.

SSDI beneficiaries are typically older people with severe mental or physical disabilities. Many SSDI recipients are in their 50s, and over three quarters are over the age of 50, with 4 in 10 being 60 or older.

Preparing to Apply for SSDI Online

Before applying for SSDI, you will need to make sure you have everything you need to complete the application.

Here are the documents you’ll need:

Medical Records: You should have comprehensive records detailing your diagnosis, treatments, ongoing symptoms, and any test results or doctor’s notes. This is especially important if you are dealing with mental health conditions or cognitive disorders like dementia, as they can require more detailed documentation to illustrate the impact on your ability to work.
Employment History: You’ll need a complete history of your employment, including past job titles, duties, and the time frame for each position. This information helps the Social Security Administration understand your work background and evaluate your claim in the context of your work capacity.
Social Security Number and Other Personal Details: Make sure you have your Social Security Number, birth certificate or other proof of age, and information about your dependents, if applicable.

How to Make Preparation Easier:

Tip #1: Contact your doctor ahead of time to request all necessary records, including recent evaluations and test results. Review these documents to verify that they have clear evidence of how your disability impacts your daily activities and work capacity.
Tip #2: If you have a mental health condition or dementia, gather statements from therapists, psychologists, or other mental health professionals outlining the severity of symptoms and how they impede daily functions. Third-party statements from caregivers or family members can also strengthen your case by providing more impact on how this condition has impacted your life and work.
Tip #3: Prepare a timeline of your work history, noting any significant changes in responsibilities or performance correlating with the onset or worsening of your condition. The more detailed your employment narrative, the easier it will be for the SSA to assess how your disability affects your ability to perform past work.

How to Apply For Social Security Disability Insurance

1. Create a “my Social Security” Account: A “my Social Security” account allows you to manage and track your application, check your earnings record, and access personalized information related to your benefits. This is a secure portal for updates and notifications throughout the SSDI process! Here’s how to do it:

Visit ssa.gov and click on “Sign In/Sign Up.”
Choose “Create an Account” and follow the prompts.
Provide your personal information, such as your Social Security Number and email address.
Set up multi-factor authentication for added security.
Verify your identity using questions based on your credit report or receiving a verification code via mail or phone.

2. Start the online application: Once logged into your account, go to the “Disability” section and select “Apply for Disability Benefits.” This will lead you to the online application form. The first part of the application includes basic information such as your personal details, work history, and the nature of your disability. Be prepared to outline when your disability began and how it impacts your ability to work.

3. Fill out the application: Here’s what is usually required on the application:

Personal Information: Ensure your name, address, and contact details are up to date.
Medical Information: List all your medical conditions, treatments, and healthcare providers.
Work History: Enter detailed information about your previous jobs, including job titles, duties, and dates of employment.
Education: Provide your educational background, as it can affect the type of work the SSA considers you capable of doing.
Include every relevant medical professional you’ve seen and all treatments you’ve received. Use precise dates and descriptions, especially if applying for disability due to mental health conditions. Record your symptoms, treatment plans, and the progression of your condition on the application.

4. Submit medical evidence: If you’re applying for disability for mental health, documentation is especially important – you’ll need records from psychiatrists, therapists, and other mental health professionals. Include diagnosis reports, therapy notes, and evaluations showing the impact on daily life and work capabilities.

5. Review and submit the application: Double check each entry for accuracy, ensuring there are no typos or missing details. Then, confirm that all medical and employment information is precise and that you have attached any supplemental documents.

After applying, log into your “my Social Security” account regularly to check for updates. You’ll receive notifications via email or through the portal, which can help you stay informed about any additional information requests or status changes.

Differences Between SSDI and SSI

Social Security Disability Insurance is often confused with Supplemental Security Income, also known as SSI. While both of these programs give financial assistance to people with disabilities, there are subtle differences between the two.

SSI provides basic financial assistance to people and older adults with disabilities with limited income and resources. The main difference between SSI and SSDI is that SSI is based on age, disability, and limited income, while SSDI is based on disability and work credits.

It is possible to qualify for both benefits, but SSI will focus on your lack of income, while SSDI will concentrate on your work history.

Conclusion

Applying for Social Security disability insurance online is quick and easy, but you’ll need to make sure you have all the required documents before starting the application.

If you want to learn more about disability insurance and how it can help your situation, contact Think Life today!

Frequently Asked Questions

What is the fastest you can get approved for disability?

Typically, SSDI has a waiting period of about 5 months. However, cases can get expedited and approved within 20 days in rare situations (but this is extremely uncommon!).

What is the 5-year rule for Social Security disability?

The “five-year rule” for SSDI allows people who have already received disability benefits to skip the waiting period after the application process after returning to work. You’ll be able to receive cash benefits for 6 months while the Social Security Administration determines whether or not you qualify for benefits again.

What is the monthly payment for Social Security disability?

The monthly payment can depend on the state and your situation, but it is typically around $1500.

What is the most approved disability?

The most commonly approved disabilities for SSDI are arthritis and other musculoskeletal disabilities.