Many disabled people who can’t work or keep a job get help from the government through social security disability benefits. And while it may seem like an attractive program, there are some cons to being on disability that you need to be aware of.
Before you start, the Social Security Administration (SSA) has strict definitions of disability that you may not even be eligible for if you don’t fall under them. Further, the application process is extremely difficult and time-consuming. Lastly, once you win disability benefits, you will not be allowed to work or receive medical insurance.
Keep reading below for more information.
Cons of Being on Disability
Here are six negatives of getting social security disability you need to consider.
1. The Application Process is Challenging
Winning SSDI benefits is incredibly tough due to the complicated government laws and challenging disability benefits application process.
For Social Security Disability Disorder (SSDI) candidates, the typical waiting period for an eligibility hearing is 360 days. Furthermore, the Social Security Administration (SSA) accepts only about a third of all applications. If you have been denied disability benefits, you might have to contact a lawyer to ensure you gain the benefits you are entitled to.
If your application is denied the first time you submit it, you might need to undergo a difficult, four-level appeals procedure to receive the benefits you are entitled to.
The SSA’s rigorous definition of disability for SSDI benefits is another notable factor. Private long-term disability insurance policies typically have own-occupation definitions, which let you qualify for payments even if you cannot perform your current job but can perform other jobs.
To be eligible for SSDI benefits, you must prove that you can’t do any work that pays you enough to live on. Hence, SSDI has stricter requirements than private disability insurance plans. You must also show that you are disabled and meet the non-medical criteria.
For more information on who qualifies for SSDI, watch this video below:
The ideal candidate for Social Security Disability Benefits
2. It Might Pay Less Than You Need
Your monthly SSDI benefits might not be enough to pay your living expenses. The average benefit payment per month is $1,171. Even if you contribute the highest amount possible to Social Security each month, you will still receive the maximum monthly benefit payment of $3,627.
In addition, if you have a working spouse, the government may tax your monthly SSDI benefit payments.
On the other hand, if you were paying for your coverage, a private disability insurance policy might provide up to 60% of your gross income before becoming disabled. The benefits would also be tax-free. You also have more freedom to select a private disability insurance policy that fits your lifestyle and monthly spending limit.
As a result, your financial needs may only partially be met by SSDI compensation. Even after you go through the difficult steps to apply for SSD, you might not get much out of being approved for SSDI benefits.
3. It is a Time-Consuming Process
Even if you can show that you meet the requirements for Social Security Disability Insurance benefits and the requirements for monthly payments, you might have to wait a few months before you get benefits.
Due to the large number of people applying for disability benefits across the country, the SSA has a long list of people waiting for their applications to be reviewed. Almost a million people are currently on this list.
As a result, if you’re disabled and have applied for SSDI benefits, you might have to wait a while for your case to be reviewed. Many SSDI applicants suffer and eventually pass away each year, even before their applications are reviewed.
If you become disabled without having private disability insurance, there is a good chance that you won’t have any income for many months. So, SSDI may not be a solid insurance plan to replace lost income after being disabled.
4. SSDI has Strict Definitions of Disability
Unlike private insurance programs or other government organizations, Social Security’s disability program has different eligibility requirements. Unlike veterans’ benefits or workers’ compensation, Social Security does not offer benefits for temporary or partial disabilities.
A person must satisfy the Social Security Act’s criteria for disability to be eligible for disability benefits. According to the Act, if a person is unable to work because of a serious medical condition that has persisted for at least a year or is anticipated to do so or cause death, they are considered disabled. The person’s medical condition(s) must impede them from performing tasks they previously performed and from shifting to new tasks.
Because of how narrowly the Act characterizes disability, Social Security disability beneficiaries are some of the most severely handicapped people in the nation.
Those receiving Social Security disability benefits have a death rate over three times higher than others their age. One in six men and one in eight women who begin to receive disability benefits at 55 pass away within five years after the onset of their conditions.
5. You May Lose Your Health Insurance
Medicaid is an extensive health insurance program covering everything from hospital stays and preventative care to prescription medicines and mental health services. If Medicaid did not pay for some of the incredibly expensive treatment individuals require for their severe disabilities, some of these folks would simply be unable to survive.
Medicaid eligibility depends on a person’s financial situation and medical issues; if a person is even marginally above the Medicaid income line, he or she may not be able to qualify for benefits instantly.
A person receiving Medicaid who then starts obtaining SSDI might exceed his income and lose his Medicaid coverage since SSDI funds are, regrettably, countable income for Medicaid and SSI criteria. A person who loses Medicaid owing to SSDI may go without medical insurance for a long time, as Medicare benefits don’t start for another 24 months after the SSDI eligibility date.
If you are getting SSI or Medicaid and want to apply for SSDI, you need to talk to your special needs planner about what this means before you file your application. Not all people who start receiving SSDI will lose their Medicaid benefits.
For example, some SSDI recipients may still be able to get Medicaid even if their income is too high for SSI. This is because of the “Pickle Amendment.” Even though not every Medicaid recipient is so dependent on it that losing it would be a disaster, why take the chance? Consult your special needs planner right away.
6. You are Not Permitted to Work
The inability to work is one of the main problems that people with disabilities must deal with. Many disabled persons are left in a grave situation without a source of income, especially because the amount they receive in social security benefits is hardly enough for them to make ends meet.
While receiving social security disability benefits, you won’t be permitted to look for work, not even part-time work. This does not apply during the nine-month trial employment period, during which you may continue to work while receiving benefits.
Conclusion
Many people have no choice but to apply for disability insurance from Social Security, and the negatives of being on disability are far outweighed by the advantages. Having said that, you should always keep the negative aspects in mind.
