For those who don't practice in Social Security disability law, DLI doesn't mean much. However, if you are about to apply for disability benefits, DLI is a critical term. It tells you basically whether or not you can file a new claim.
DLI stands for Date Last Insured. Social Security requires that a person be "insured" at the time they first became disabled. How does one get and stay insured? By working. From every paycheck, your employer will deduct approximately 7.5 percent of your wages and send it to the Social Security trust fund. This tax is like the premium you pay on your car or homeowners insurance. So, to be "insured," you must have worked a certain amount. Not only that, but the work must have been recent enough--because your insured status will expire a few years after you stop working. You will need a certain number of quarters of coverage to be insured.
One earns a “quarter of coverage” or a “credit” based on one's taxed earnings in a particular year. In 2017, a quarter of
coverage or a credit is earned for each $1300.00 in
taxed earnings you have posted to your Social Security record. Thus, by
working for an employer who has paid you $5200.00 (or by claiming a
net profit of $5200.00 as a self-employed individual) during the course
of 2017, you will accrue 4 quarters of coverage.
How many quarters of coverage do you need to be insured? It depends on your age. The best way to know if you are insured for disability benefits is to call your local Social Security office.
I was recently contacted by "Betty," who is certainly disabled and would be entitled to Social Security benefits. The problem is, Betty stopped working back in 2003. Her insured status at Social Security expired on 12/31/08. She didn't become disabled until about 3 years ago. Thus, her insured status had expired before she became disabled. Therefore, she is not entitled to file a Social Security disability claim.
I use a simple example to explain this. Suppose my house burns. It isn't enough that I once had insurance on the house. I must have insurance in force at the time the house burns. That would depend on whether I paid my premiums or not.
So, whether or not you are insured by Social Security disability depends on when you stopped working and paying FICA tax into the Social Security trust fund. Generally speaking, you will be covered for about 5 years after you stop working.
Please note that this information applies to SSDI or Title II, which is the regular Social Security disability program. It does not apply to Supplemental Security Income (SSI), which is more like a welfare program and does not depend on work credits at all. Both SSI and SSDI are administered by the Social Security Administration but they are very different programs.
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