Legal Definitions - SSDI

SSDI stands for Social Security Disability Insurance.

Social Security Disability Insurance (SSDI) is a federal program that provides monthly financial benefits to individuals who are unable to work due to a severe medical condition. To qualify for SSDI, an individual must have a significant work history during which they paid Social Security taxes, accumulating enough "work credits." Their medical condition must meet the Social Security Administration's (SSA) strict definition of disability, meaning it prevents them from engaging in substantial gainful activity and is expected to last for at least one year or result in death. The amount of the monthly benefit is calculated based on the individual's past earnings and contributions to Social Security, rather than their current income or assets. In certain situations, eligible family members, such as a spouse or dependent children, may also receive benefits based on the disabled worker's record. SSDI is distinct from Supplemental Security Income (SSI), which is a needs-based program for low-income individuals who are aged, blind, or disabled, regardless of their work history.

Here are some examples of how SSDI applies:

• Example 1: Maria worked as a registered nurse for 25 years, consistently paying Social Security taxes. At age 50, she developed a progressive neurological disorder that severely impaired her motor skills, making it impossible for her to perform her duties or any other substantial work. Her doctors confirm the condition is permanent and debilitating.

  Explanation: Maria would likely be eligible for SSDI because she has a substantial work history with Social Security contributions and her severe, long-term disability prevents her from working, meeting the SSA's criteria for disability.

• Example 2: David, a self-employed graphic designer, suffered a catastrophic stroke at age 45, leaving him with significant cognitive and physical impairments. Although he had a successful career, he can no longer operate a computer, communicate effectively, or manage his business. He had consistently paid self-employment taxes, which contribute to Social Security.

  Explanation: David's situation illustrates SSDI eligibility because he has a history of paying Social Security taxes through his self-employment and now faces a severe, long-term disability that prevents him from performing his previous work or any other substantial gainful activity.

• Example 3: Sarah, a single mother, worked full-time in retail for 15 years before being diagnosed with a severe autoimmune disease that forced her to stop working permanently. She was approved for SSDI benefits. Because her 10-year-old son, Alex, is a dependent child, he also receives a monthly benefit based on Sarah's work record.

  Explanation: This example demonstrates how SSDI can extend benefits to eligible family members. Sarah qualified due to her work history and severe disability, and her dependent son, Alex, receives auxiliary benefits based on her approved SSDI status.