SOCIAL SECURITY AS "INSURANCE"

Individuals qualify for Social Security disability coverage because they have worked and paid into the Social Security Disability Trust Fund (SSDTF).  They are required to have worked a minimum number of quarters to have coverage, often referred to as Title 2 coverage.  The contributions made by each worker, and matched by each employer, are referred to as FICA taxes.  FICA stands for Federal Insurance Contributions Act.  Contributions (taxes) are mandatory for most workers.  The current tax rate for Social Security is 6.2 percent, paid by the worker and another 6.2 percent is paid by the employer.  An additional Medicare tax of 1.45% of added.  Note:  The 12.4 percent Social Security tax funds both the Retirement Trust Fund and the Disability Trust Fund.

The minimum quarters of coverage required to be insured vary according to the age of the worker.  A very young worker may only need to have worked about 1 year to be insured under Social Security disability.  An older worker will need more work.

When a person stops working, contributions to FICA also stop.  However, Title 2 disability insurance coverage does not stop immediately.  For most individuals, they will lose Social Security disability coverage about 4 years after they stop working.  They may eventually regain coverage if they start working again.

Individuals who have not worked, or have stopped working and lost their Title 2 disability insurance coverage with Social Security, can only file Title 16 claims, often called "SSI" for Supplemental Security Income.  These claims do not require a work record or quarters of coverage. SSI claims are means tested.  There are income and resource limits for receiving SSI benefits.  Also, the monthly benefits available for SSI are usually less than for regular disability based on a work record.  For instance, the monthly maximum benefit in 2015 for Social Security Disability (Title 2) is $2,663.  The monthly maximum for SSI is only $733.

Can We Help You With a Disability Claim or Appeal? 

The medical qualifications for Title 2 and Title 16 (SSI) are exactly the same.  In short, both programs require the claimant to prove a disability based on the same medical standards (except for certain dependent's benefits based on a parent's disability).