A cancer diagnosis can bring a lot of unexpected expenses. And if you have to take time off work, how do you still pay your bills? Disability insurance can help you manage the costs of a cancer diagnosis.
However, navigating the various disability insurance options can be a challenge. The first step is to learn about the different types of disability insurance you may be qualified to receive.
If you are unable to work because of your medical condition, depending on your diagnosis, time spent working and contributing to the Social Security retirement system in the past, you may be eligible for federal disability benefits through Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), state disability insurance programs, disability insurance offered by your employer, or private disability insurance that you buy directly from an insurance company.
SSDI is a federal program through the Social Security Administration (SSA) that provides a monthly payment for those who have worked for a sufficient amount of time, contributed to the Social Security retirement system by paying taxes, and meet SSA’s definition of disability. After receiving SSDI benefits for two years, recipients are also entitled to Medicare.
SSI is also a SSA program that pays monthly benefits to the elderly, blind, and people who have disabilities and very low income and assets. These payments begin immediately, and you would be able to receive them during the SSDI waiting period if you qualify for both SSI and SSDI. Typically, people who receive SSI benefits and are eligible for Medicaid.
Both the SSDI and SSI programs have the same standard of “disability.” To be considered “disabled” by Social Security, you must be “unable to engage in any substantial gainful activity (or any work activity where you earn more than $1,130 in 2016) by reason of any medically determinable physical or mental impairment that is expected to result in death or has lasted, or can be expected to last, for a continuous period of 12 months.”
If you are approved you will receive a letter with a date of “disability onset,” this date is the date that SSA believes your disability began and the start date of your “waiting period.” You must wait five months from this date before you will begin to receive SSDI benefits. Your monthly disability payment is calculated using a formula that takes into account how much you have paid in Social Security taxes over your work history.
If your initial application for SSDI or SSI is not approved you have the option of appealing the denial. In most states you can request a reconsideration of your application. If you are still denied, you may request a hearing by an administrative law judge (ALJ). If you are deemed disabled after appeals processes, you may receive retroactive payments.
In addition to the federal disability insurance programs, some states offer state disability insurance. California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico offer short-term disability insurance benefits to those who are unable to work due to a medical condition.
Private and employer-sponsored disability insurance is another option for you to consider. Private insurance is available for purchase directly from an insurance company. In some cases, employers offer both short and long-term disability coverage for their employees. A policy usually provides regular payments that replace a portion of your salary. One important thing to note is that you may qualify for your employer-based policy, even if you don’t qualify for SSDI or SSI.
Triage Cancer has resources to help you find out more about disability insurance and how it can help you:
- Review our quick guide on Disability Insurance to see what type of disability insurance benefits might be available to you.
- We also have a recent webinar, Demystifying Disability Insurance, delivered by Monica Bryant, Esq., CEO of Triage Cancer, which provides more detailed information on these options!
For more information about the Social Security Administration’s disability benefits, visit: www.ssa.gov/disabilityssi or read this guide: www.ssa.gov/pubs/EN-05-10029.pdf.