HOW CAN YOU SURVIVE WHILE WAITING ON SOCIAL SECURITY DISABILITY?

One of the most difficult questions we get is: "How can I survive financially while I wait to get my Social Security disability check?"

Since most applications are denied and must go through the tedious appeal process, it can take months to get your benefits started.* In the meantime, the bills keep coming. There are a few limited sources of financial help while you try to hang on and get benefits started. Here are 3 of them:

• Supplemental Nutritional Assistance Program (SNAP)

• Temporary Assistance for Needy Families (TANF)

• Hardest Hit Alabama (HHA) - help with your home mortgage payments

Also consider whether you can cash out your 401(k) or borrow against your retirement plan. Permanent life insurance policies often have cash and loan values that you can borrowed against.

If your former employer carried a group disability policy on their employees, check to see if you qualify for either short term disability (STD) or long term disability (LTD) benefits through the plan. This is a great source of substantial income while you wait on Social Security. This is time sensitive, so apply for these benefits before you stop working if possible. If not, apply as soon after you stop working as possible.

Finally, there is the option to keep working part-time after you apply for Social Security disability; however, this is tricky.

If your claim is a Title 2 or SSDI claim, you must keep your earnings below "Substantial Gainful Activity" (SGA) as specified in the Social Security rules. In 2021, you must keep wages or self-employment earnings below $1,310 per month (gross) for any month after your alleged onset date. Earnings over that amount disallows your SSDI claim because you are "working."

If your claim is for Title 16, or Supplemental Security Income (SSI), there are very strict limits on income, savings and other financial resources. They may count HOUSEHOLD income, not just the claimant's personal income. So if a spouse works, for example, his or her income may be counted as household income. Other types of financial resources may also count.

If you're reading this and you're not disabled, I encourage you to enroll in both short term disability and long term disability through your employer, if possible. This low cost insurance is underwritten by a commercial insurance company and can replace up to 70 percent of your income if you become disabled (depending on the policy). Your employer often pays some or all of the premiums--but you must enroll. This insurance is much easier and quicker to qualify for compared to Social Security disability.

Since 1 out of 4 American workers will become disabled before retirement age, it makes sense to have all the disability insurance you can get.

*Note: Social Security disability insurance (SSDI) does not cover the first 5 months of disability. So, even if your claim goes exceptionally fast, you will be without a Social Security disability check for at least 6 months after you apply.