The Social Security disability process is littered with emotional highs and lows. One example is the five-month waiting period disabled workers are faced with when they are approved for Social Security Disability Insurance (SSDI).
Many times Social Security disability applicants express a sigh of relief when they find out they are approved for SSDI, but then experience confusion when the award letter informs them that they have to wait five months, from the established disability date, before they are entitled to payments.
This is not something Social Security came up with on a whim. In fact, the waiting period for SSDI payments has been in place since 1954. The reasoning behind the waiting period was, in part, to deter those who could work from applying for Social Security disability, according to a Congressional Research Service report submitted August 31, 2012.
The impact of missing five months worth of benefits is substantial for SSDI recipients. The 2013 average monthly SSDI payment is $1,132, which means the waiting period is costing the average SSDI recipient more than $5,600.
“One study estimates that eliminating the waiting period would have the same positive effect on the number of SSDI applications as a 10 percent increase in the level of benefits,” the Congressional Research Service report states.
Although this report suggests that eliminating the SSDI waiting period would benefit disabled workers, it also suggests that there are other programs in place to supplement the disabled worker until SSDI benefits kick in. Some of these programs include Temporary Disability Insurance provided by some states, Worker’s Compensation, Unemployment Insurance and Private Disability Insurance through an employer. These programs have their own rules and regulations that may disqualify those who are seeking SSDI.
The other program identified to support applicants impacted by the five-month waiting period is the Supplemental Security Income (SSI) program, which you must also be disabled for to receive payments if you under age 65. There is no waiting period for SSI applicants as they may be eligible to collect benefits subsequent to the application date.
