If you’re injured in an accident caused by another person’s negligent or reckless actions, you are most likely eligible to pursue compensation for medical expenses and lost wages. This type of financial compensation is vital in order to protect injury victims from financial losses while ensuring they have the resources they need to recover.
However, those who are on disability may be wondering how a personal injury settlement that includes financial compensation for lost wages potentially affects eligibility for disability benefit. Our Evansville disability attorneys explain more about this topic below.
Disability Benefits Eligibility for Personal Injury Victims
In almost all cases, personal injury settlements have no impact on one someone’s disability benefits. This means that you should still receive your Social Security Disability Insurance (SSDI) benefits, even if you accept a personal injury settlement.
The reason for this is because SSDI is typically based on the time worked prior to the disability, not the severity of the injury or the income received. Therefore, any additional income you receive form a settlement has nothing to do with your eligibility for this type of governmental assistance.
In short, if you sustained an injury in a car accident, truck accident, slip and fall, or another type of personal injury incident, you don’t have to worry about your disability benefits stopping. In fact, injury victims who receive personal injury settlements may also be able to file for disability benefits as well.
The Difference Between SSD vs. SSI Eligibility
Many people commonly mix up SSD and Supplemental Security Income (SSI), but these are two distinct types of benefits that are impacted in different ways by personal injury settlements. As we mentioned, SSD eligibility is typically not affected, however this is not the case when it comes to SSI payments.
If you receive a personal injury settlement while on SSI, your payments will most likely be either reduced or terminated. This is because Supplemental Security Income is a needs-based welfare program tied to income and assets, so if you earn too much “countable monthly income,” you will be ineligible for these benefits.
There are certain protections you can take to protect both your SSI eligibility and your personal injury settlement, such as transferring the settlement money into a special needs trust. A disability attorney can review your case and take the steps necessary to help safeguard your financial compensation and benefits.
Turn to a Disability Law Firm You Can Trust
For more than 20 years, our Evansville disability law firm has been providing real people with the legal support they need to get the disability benefits they are owed. If you need assistance filing a disability claim through the Social Security Administration (SSA), know that we are to fight for you.
While you may be entitled to benefits, the SSA has red tape that makes it difficult for everyday people to receive financial assistance for their medical condition without legal help. We will work hard on behalf of you and your family to tailor a strong case on your behalf. We offer free, personalized consultations, so you have nothing to lose by making the first step and contacting our team!
