If you’ve ever heard the term “disability benefits” and wondered what, exactly, it means, you’re not alone. There are multiple types of disability benefits, and the rules to qualify are different for every program. It’s also possible to get payments from different programs that offer disability benefits, but not all at once.
Disability programs exist to provide financial resources to people who become unable to work, specifically for health reasons. Sometimes that disability results from an injury or illness that happens while working for an employer. In other cases, it can stem from a condition that runs in someone’s family, like arthritis or diabetes. Sometimes it’s because they were born blind, deaf, or with another type of disability that makes working too difficult. Each case is unique.
In this article you’ll learn about the most common types of disability programs, who may qualify for benefit payments, and how much money you can expect to receive if you do qualify.
Types of Disability Benefits Available in the United States
There are 5 types of disability benefits available in the U.S. for eligible applicants:
- Social Security Disability Insurance (SSDI). This program is funded by payroll taxes that go to the Social Security trust fund. It also has a work history requirement. Apply for SSDI if your health makes you unable to work for 12+ months reasons and have 40 work credits.
- Supplemental Security Income (SSI). General tax revenue funds this federal monthly benefit program for disabled children, adults, and seniors at least 65 years old. It uses the same medical eligibility criteria as SSDI but has no work history requirement to qualify for payments.
- Private disability benefits. While you’re still healthy, you can purchase a private insurance plan that offers both short-term and long-term disability benefits. You may also qualify for LTD or STD payments through your employer’s insurer, if it’s part of your benefits package.
- Workers’ compensation. These benefits usually come from your employer’s insurance provider if you suffer a work-related injury or illness. Unless you’re a federal employee, workers’ compensation rules change from state to state for injured workers. Not every injured worker will qualify for workers’ comp benefits, and some states make coverage completely optional for employers.
- Veterans’ disability benefits. VA disability compensation pays monthly benefits to eligible disabled veterans with an honorable discharge from military service.
Option #1 for SSA Disability Benefits: Social Security Disability Insurance (SSDI)
Social Security Disability Insurance (SSDI) is a program for people who can show they have enough work history and credits. Only people who have paid Social Security taxes can receive money from it. (These Social Security taxes are also called FICA, which stands for Federal Insurance Contributions Act). The lone exception is that certain dependents of someone who’s eligible for SSDI can also get monthly disability benefits, too.
How to Qualify for SSDI
A person must pass two tests to be eligible for these Social Security disability benefits from a work history standpoint:
- A recent work test, which is based on age.
- A duration of work test, which shows that you worked long enough while paying Social Security payroll taxes.
In general, if you’re at least 30 years old, you need 40 Social Security work credits to qualify for SSDI. But if you become disabled the year you turn 30, you need at least 4.5 years of work from the last 9 after your 21st birthday.
Beyond that, you must not be out of work for more than 60 months before you apply for SSDI disability benefits. That alone satisfies the “recency” work requirement for SSDI from the Social Security Administration.
You must also not receive any other Social Security benefits at the time you file your SSDI application. That’s because SSDI automatically converts into regular retirement benefits upon reaching your 67th birthday. Federal law prevents anyone from drawing two Social Security payments on the same work record. Finally, any federal or state government employee who receives a pension should watch out for the Windfall Elimination Provision.
The WEP affects certain workers who pay into Social Security but also receive pension funds upon their retirement. Most of these plans also have provisions that pay disability benefits to workers who must stop working for 12+ months.
Certain other non-government employees with pension plans (like teachers and firefighters) may also have WEP reductions to these types of disability benefits.
What Qualifies as a Disability for SSDI?
You must have a mental or physical injury or illness that stops you from working for at least one year. The Social Security Administration will ask if you can do the same type of work that you did before. If you can keep working, even just part time, that will count against your claim. The SSA will also ask if you can do any kind of work. If you can answer yes to this question, the agency likely won’t award you SSDI.
A disability as defined by the SSA means your condition must significantly limit your ability to do basic work activities:
- Carrying objects of a certain weight for short distances
- Lifting
- Remembering instructions
- Sitting
- Standing
- Walking
In addition, you’ll probably have to undergo a consultative exam. This medical exam is always free and happens through a nearby Disability Determination Services office in your state. That way, the SSA has independent confirmation that your health makes you unable to work for at least 12 months.
How Much Does SSDI Pay in SSA Disability Benefits?
If you qualify for SSDI, your benefit pay amount is based on your average earnings record before you became disabled. In other words, the more you previously earned while working, the more you’ll receive each month in SSDI disability benefits. But this doesn’t mean that SSDI will pay you the same amount as your former monthly paychecks.
In 2024, the average SSDI payment nationwide is $1,537. The most anyone can get in SSDI income each month is $3,822, but it’s very rare.
Other Things You Should Know About SSDI
Eligible dependents can receive up to 50% of a disabled worker’s monthly payment once SSDI benefits begin:
- Current or former spouse, if you’re divorced
- Children younger than 16 who live in your home at least part time
- Other dependent family members, in certain cases (such as elderly parents that live with you)
These types of disability benefits are also available to certain workers who are not U.S. citizens, but permanent legal residents. This group includes:
However, undocumented workers cannot qualify for SSDI disability benefits.
Two years after SSDI awards you monthly disability benefits, you become eligible for Medicare health insurance. Your Medicare coverage can start 24 months after you receive your first SSDI benefit payment.
If you are receiving workers’ compensation when you file for SSDI, the amount you receive in SSDI may decrease. This is called the workers’ compensation offset, and once those benefits end, your SSDI amount will go up.
Option #2 for SSA Disability Benefits: Supplemental Security Income (SSI)
Supplemental Security Income (SSI) does not require any work history because it comes out of the federal government’s general taxes. People who have never worked before – including children – can qualify for these types of disability benefits. That’s because SSI is a program that only helps people with little or no income, savings, or other financial assets. You must meet specific financial requirements to qualify, and the SSA reevaluates your case every 3-7 years.
How to Qualify for SSI Benefits
“Resources” simply means anything you have that is of value and can easily sell in exchange for cash. That might be property (but not the value of your home and, in most cases, your vehicle). Specifically, to qualify for SSI your financial resources cannot exceed $2,000. The limit for couples is $3,000.
You must also have a documented disability, either physical or mental, that will prevent you from working for at least one year. If you are 65 or older, you are not subject to this requirement.
The limited income requirement means that your entire household combined must earn less than $1,550 per month.
How Much Does SSI Pay in Monthly SSA Disability Benefits?
The maximum amount awarded for SSI payments is $943 per month for an individual or $1415 for a couple. Supplemental Security Income payments are not based on a person’s job history or past work income. Instead, there is a yearly federal maximum amount applicants can receive in these types of disability benefits.
Other Things You Should Know About SSI
Some states award a supplementary payment program for SSI recipients. That means that when a person qualifies for SSI benefits, they also qualify for that extra state supplementary payment in:
- California
- Delaware
- District of Columbia (i.e., Washington, D.C.)
- Hawaii
- Iowa
- Michigan
- Montana
- Nevada
- New Jersey
- Pennsylvania
- Rhode Island
- Vermont
The average amount of a state supplemental SSI award is $207.67. In many states, SSI beneficiaries also automatically qualify for other benefits, like SNAP or TANF payments. These additional benefits may also include things like Section 8 vouchers or housing with features designed for people with disabilities.
When you receive SSI approval, you also qualify for Medicaid health insurance coverage the month your payments begin.
Workers’ Compensation
Workers’ compensation offers benefits that become available to an employee who suffers an injury or illness while on the job. Most companies have workers’ comp insurance coverage that starts from day one of employment for eligible employees.
Workers’ comp can cover medical expenses for someone hurt on the job, and with no requirement to show fault. If you miss enough work shifts after your accident, you may also qualify for workers’ compensation wage-loss payments.
The amount of time you can receive these types of disability benefits that replace about 2/3 of your usual income varies by state. Temporary total disability benefits (TTD) from workers’ compensation insurers will end if you:
- Reach medical maximum improvement (MMI)
- Accept a lump-sum settlement offer on your claim
- Return to your job, often in any capacity (i.e., light-duty work or reduced hours)
- Receive benefits for the maximum number of weeks allowed under your state’s laws
You should also know that insurers deny about half of workers’ compensation claims in certain states. So, getting a free claim evaluation from a workers’ comp attorney in your state is almost always a wise option.
Veterans’ Disability Benefits
A veteran with an honorable discharge can receive veterans’ disability benefits from the VA for eligible service-connected medical conditions. They can also receive monthly VA disability compensation if military service aggravates a pre-existing mental or physical condition.
Other Things to Know About VA Disability Benefits
Since these payments come from the U.S. Department of Veterans Affairs, vets must apply through the VA, not the SSA. You can also file an application for these types of disability benefits through a VA-accredited attorney, free of charge.
People who receive VA benefits can also simultaneously receive SSDI or SSI benefits. In fact, the Social Security Administration speeds up SSDI and SSI claim reviews for vets with a 100% P&T rating.
Private Disability Insurance (Short- and Long-Term Benefits)
Private disability insurance is not something you can get from a federal government program. Employers typically offer these types of disability benefits as part of a benefit package to new employees. However, individuals can also purchase short and/or long-term disability insurance from any licensed broker:
- Short-term disability, or STD benefits, usually last for no more than 52 weeks.
- Long-term disability (LTD) plans typically have a waiting period before they start paying benefits. Payments usually equal 50%-70% of your pre-disability earnings but varies depending on your policy.
Important: You cannot purchase private disability insurance after your medical condition forces you to stop working. Instead, you must purchase it while you’re still healthy and able to work enough to support yourself financially.
Work With an Attorney to Get Disability Benefits
Government reports show those who work with a disability attorney are 3x more likely to get benefits within 180 days. People who file for SSA disability benefits without an attorney usually wait 1-3 years with no income for claim approval. Even worse, the SSA only approves 1 in 5 initial claims for these types of disability benefits. The latest annual report also shows that just 30% of people who apply eventually receive monthly SSDI or SSI payments.
Disability lawyers charge $0 for legal claim help until after the SSA awards you monthly benefits. If you’re denied and lose your appeal, you still owe your attorney $0. But if an attorney helps you win, you’ll only pay one small fee afterwards that comes out of your SSA award.
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Lisa Allen is a writer and editor who lives in suburban Kansas City. She holds MFAs in Creative Nonfiction and Poetry, both from the Solstice Low-Residency Program in Creative Writing at Pine Manor College. Prior to becoming a writer, Lisa worked as a paralegal, where she specialized in real estate in and around Chicago.
