Disability Insurance Benefits: SSDI vs Private Coverage

Compare Social Security Disability Insurance with private disability coverage. Benefits, eligibility, and application guidance.

Understanding disability insurance options helps protect income when unable to work due to illness or injury. **Social Security Disability Insurance (SSDI)** SSA eligibility requirements: - Cannot perform substantial gainful activity - Disability expected to last 12+ months - Have sufficient work credits - Meet medical listing criteria Benefit calculation: - Based on lifetime earnings - Average monthly benefit $1,537 (2024) - Benefits begin after 5-month waiting period - Medicare eligibility after 24 months **Private Disability Insurance** Coverage features: - Short-term disability (3-12 months) - Long-term disability (years to retirement) - Benefit amounts 50-70% of income - Shorter waiting periods possible **Employer Group Disability** Common features: - Lower cost through group rates - Basic coverage often provided free - Supplemental coverage available - Benefits may be taxable if employer-paid **Individual Disability Policies** Advantages: - Portable between jobs - Guaranteed renewable terms - Own-occupation definitions - Cost-of-living adjustments **When to Apply for SSDI** File immediately when: - Unable to work for expected 12+ months - Medical condition meets SSA criteria - Have sufficient work credits - Need Medicare coverage The SSA disability application process can take 3-5 months, so apply as soon as eligible.