Disability Insurance Matters For Every Working Generation

By Steve Perrigo

No one expects to have a life-threatening illness or injury, but knowing how to safeguard your income can help deal with the overwhelm of treatment, recovery and bills piling up. It’s vital for U.S. workers including Baby Boomers, Generation X, Millennials and Generation Z, to understand the significance of federal disability insurance and how it can provide financial protection if a disability prevents them from working.

One of the most powerful programs for individuals with disabilities is the combined benefit of Social Security Disability Insurance (SSDI) and the Ticket to Work Program (TTW), a free service provided by the Social Security Administration (SSA) to assist individuals with disabilities to reenter the workforce.

The Combined Benefit Of SSDI And Ticket To Work

More than 159 million American workers are covered by SSDI. Still, many don’t realize that they have paid into the program with their FICA taxes, which makes them eligible to apply for and receive disability benefits if they meet the SSA’s criteria. Further, about two-thirds of SSDI beneficiaries are unaware that TTW is part of the SSDI program and can significantly benefit them and their families once their medical conditions improve enough to return to work.

Bill Clinton signed The TTW Program into law in 1999. After nearly 25 years, the program is still not very well-known. TTW allows people with disabilities to try working again while protecting their SSDI benefits. They can return to the same job, find a new job in a new industry or become self-employed.

SSDI unlocks an entire range of benefits once individuals are approved including:

Monthly income.
Access to Medicare coverage.
Income for dependents under 18 years of age.
Annual cost-of-living adjustments.
And more, including all the benefits of TTW listed below.

TTW helps American workers with disabilities by:

Extending Medicare coverage for up to 93 months.
Providing free help from a Social Security-authorized Employment Network or State Vocational Rehabilitation agency to return to work.
Offering a Trial Work Period during which time they can make as much money as they want and keep their SSDI benefits.
Helping them stabilize their financial future and self-sufficiency.
And more, including reinstating SSDI benefits without having to reapply if their health worsens again.

Disability Insurance Across The Generations

For Baby Boomers and GenXers, it’s important to know and understand the benefits of Ticket to Work. According to U.S. Department of Labor, 18% of those with disabilities can return to work within two years of first applying for benefits. So, if an illness sidelines you from work for a few years, and you still have five or 10 years before retirement, you’ll see important advantages when using Ticket to Work to get back to work and regain a steady financial footing.

Millennials and Gen Z, or Zoomers, who are just getting started with their working careers, have specific concerns to keep in mind with these federal programs. These younger generations need to know that if they choose a portfolio career or gig jobs, where they are not automatically paying FICA taxes through an employer, it’s imperative for them to pay taxes out-of-pocket toward FICA to be insured for SSDI and TTW.

Regardless of age or generation, it’s essential to plan for the possibility of disability and consider the role of disability insurance in protecting the financial well-being of you and your family. Staying informed about changes in disability insurance policies, eligibility criteria and government programs will help you make informed decisions about your coverage and financial planning.

Federal disability insurance is a vital component of financial planning for individuals across all generations. Understanding the options available, including SSDI and the Ticket to Work Program, can provide vital support in the event of a disability and help individuals maintain financial stability and independence.

About Steve Perrigo

Steve Perrigo has written 10 posts in this blog.

Steve Perrigo, J.D., is Vice President & Head of Sales and Account Management. He joined Allsup in 2010 following 17 years with the Social Security Administration (SSA) in various roles of increasing responsibility, including Claims Representative, Technical Expert, Operations Supervisor, and Assistant District Manager. Steve leads Allsup’s national account sales activities and provides consultative guidance to client companies by analyzing complex data sets that compare performance against historical measures, Allsup’s business results, and industry benchmarks. His consultation includes leveraging his prior experience with the SSA to identify and analyze macro-level trends with the Social Security Disability Insurance program, and providing timely insights and client updates through channels such as Allsup’s commercial blog. Steve’s educational background includes a law degree from the Nashville School of Law, where he graduated in the top 10 of his class, and a bachelor’s degree from The State University of New York. He currently is an adjunct professor of Social Security Disability Law at the Nashville School of Law.