When people can no longer work because of medical issues, they are often at risk of financial hardship. It may not take long for them to burn through their savings and end up with major financial obligations. Bills keep accruing even when people lose their ability to pay for their cost-of-living expenses.
Social Security Disability Insurance (SSDI) benefits are often a last resort for applicants. Most people prefer to support themselves whenever possible. They look into ways to treat their conditions or find gainful employment. When they cannot continue working because of medical challenges, they may eventually apply for SSDI benefits.
The Social Security Administration (SSA) reviews every application carefully. Those who provide adequate proof of a medical condition that prevents them from working and lasts long enough may be eligible for monthly SSDI payments. Occasionally, those who qualify for SSDI benefits might also be eligible for retroactive benefits.
Those who delay applying may be eligible
Generally speaking, people seeking SSDI benefits only receive payments after they apply. Some people have to wait a while to receive their first payments. Sometimes, qualified applicants get rejected and have to appeal. Applicants who eventually get approved during the appeals process may qualify for backdated benefits after completing the appeals process.
Backdated benefits are not the same thing as retroactive benefits. Retroactive benefits are available for those who potentially qualify for SSDI benefits but do not apply immediately. Those who have made a concerted effort to improve their health or support themselves before applying can sometimes request retroactive benefits.
Doing so can often prove relatively challenging. Applicants need to have sufficient evidence that they qualified based on their medical condition and employment status even before they applied for SSDI benefits. They may therefore require much more thorough documentation than those simply seeking SSDI benefits that start after they apply.
At most, those who qualify for retroactive SSDI benefits can obtain 12 months of benefits accrued before their application date. Such cases are often far more complex than basic SSDI applications. Those hoping to obtain retroactive benefits may require support as they begin preparing for an SSDI benefits application. Learning more about the rules for retroactive benefits can help people plan when to apply and more effectively budget overall.