Social Security Disability Insurance (SSDI) Benefits

You've probably heard of Social Security, but you may not be familiar with Social Security Disability Insurance (SSDI). This coverage could be exactly what you need to help protect you if you're unable to work after an illness or injury. In fact, millions of Americans rely on SSDI benefits when they're unable to work due to a severe disability to help them continue to pay their bills and meet other financial demands. 

Fortunately, a local independent insurance agent can help you determine your SSDI eligibility and get set up with a Social Security Disability Insurance policy. They'll make sure you choose the appropriate amount of coverage for your needs. But first, here's a closer look at SSDI, what it covers, and why it's important. 

What Is Social Security Disability Insurance?

The definition of SSDI is a federal insurance program that's funded by payroll taxes. As an employee, you pay FICA taxes, and a portion of this is set aside for SSDI, Medicare, and Social Security Retirement. SSDI is designed to provide you with a stream of income if you become unable to work due to a severe disability. These payments can continue until your condition improves, but income is also guaranteed even if you never improve enough to return to work. After you reach retirement age, you're transferred from SSDI to Social Security retirement income.

SSDI vs. SSI

The Social Security Administration manages SSDI benefits and policies. This program differs from Supplemental Security Income (SSI). Social Security manages the SSI program, which provides monthly financial benefits to people who have limited income and resources. You don't need to have a disability to qualify for SSI.

Save on Disability Income Insurance

Our independent agents shop around to find you the best coverage.

Find Your Agent

How to Apply for Social Security Disability Benefits

You should apply for disability benefits as soon as you become disabled. You can easily apply for SSDI benefits online or in person. The SSDI application process is likely to be similar whether you apply online or in person. You can find Social Security Disability applications on several websites, including the official SSA website. You'll need to be prepared with the following:

It can take five to eight months for an initial decision after you've applied for SSDI. 

How to Qualify for Social Security Disability Benefits

Next, understanding your SSDI eligibility requirements is important when asking how to apply for SSDI. Qualifying for any government-run program can be challenging. It's critical to understand SSDI medical requirements before you apply for coverage, too. The following are the SSDI eligibility requirements that you must meet:

You can find a complete list of what conditions qualify for SSDI on the SSA's official website, and learn more about how to qualify for disability benefits with the information provided.

Are Social Security Disability Benefits Taxable?

Yes. If you file your federal tax return as an individual or jointly, you may be required to pay income tax on Social Security Disability benefits.

If you file as an individual and your combined income is $25,000 or more, your Social Security benefits are taxed. If you file jointly and your combined income with your spouse is $32,000 or more, then your Social Security benefits are taxable.

How Much Is Social Security Disability?

Each qualified employee who's paid into Social Security via wage deductions can be eligible for Social Security Disability benefits. There is no cost to use your SSDI benefits when you need them. But you have technically already contributed to Social Security Disability through your prior work and wages in the form of Social Security tax.

Understanding SSDI Benefits and Payments

The average SSDI payment in 2025 is $1,580 per month. The chart below shows the maximum payments available to SSDI benefit recipients this year. 

SSDI payments are calculated based on a person's lifetime earnings. There are also additional benefits to SSDI, including eligibility for Medicare after 24 months. An independent insurance agent can further explain all the benefits available through SSDI. 

What to Do If Your SSDI Claim Is Denied

There are many common reasons for SSDI denials, including insufficient medical evidence, failure to cooperate with the SSA, earning too much income, drug or alcohol use, and failure to follow treatment protocols. Fortunately, you can appeal an SSDI decision if your claim was denied. The SSDI appeal process may vary depending on the course of action you take. You can:

1. Request a reconsideration from the SSA.
2. Arrange a hearing with a judge.
3. Request a review with the Appeals Court if you're unsatisfied with the judge's ruling.
4. File a federal district court action if you're unsatisfied with the decision from the Appeals Council.

Hiring a Social Security Disability lawyer can be extremely beneficial in helping you to file a successful appeal to your claim denial. Your lawyer can help walk you through the SSDI appeals process and ensure you have everything you need.

Tips for a Successful SSDI Application

Follow these SSDI application tips to increase your chances of acceptance.

1. Gather strong medical documentation of your disability before starting your application.
2. Communicate with your doctors regularly and follow all treatment protocols.
3. Keep detailed records of all medical documentation and correspondence with practitioners.
4. Follow up with the SSA regularly after submitting your application to be aware of additional requirements.

Working closely together with your doctors and the SSA can help guarantee your eligibility for SSDI benefits. An independent insurance agent can also assist you with this process.

Save on Disability Income Insurance

Our independent agents shop around to find you the best coverage.

Find Your Agent

Here's How an Independent Insurance Agent Can Help

When you're ready to apply for SSDI benefits, no one's better equipped to help than a local independent insurance agent. These agents can help with all things disability programs and insurance, including your Social Security Disability plan. Your agent can help you with the application and claims processes and even show you what other disability insurance policies you may need to cover any gaps.

FAQs About Social Security Disability Insurance