Social Security Disability (SSDI)

Social Security Disability Insurance, or SSDI, pays monthly benefits to people who cannot work because of a serious medical condition and who have enough work history paying Social Security taxes. It is different from Supplemental Security Income (SSI), which is a need-based program for people with low income and few assets, whether or not they worked.

The legal definition is strict. Under 42 U.S.C. 423(d), disability means the inability to engage in any substantial gainful activity because of a medically determinable physical or mental impairment that is expected to result in death or has lasted, or is expected to last, at least 12 months. "Substantial gainful activity" is a monthly earnings level the Social Security Administration sets each year; earning above it generally means you are not considered disabled. There is no benefit for short-term or partial disability.

SSDI often intersects with lawsuits. People injured by a drug, device, or workplace exposure may apply for SSDI while their injury case is pending. Because SSDI is based on work history rather than need, a lawsuit settlement generally does not reduce SSDI benefits, while SSI and Medicaid can be affected. Workers' compensation payments, however, can reduce SSDI in some cases. SSDI is also a separate program from private long-term disability insurance, which is governed by the policy and often by ERISA.

Keep medical records organized and consistent, since the same records support both a disability claim and an injury claim. See our guides on settlements and SSI or Medicaid and our page on long-term disability claim denials.