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Disability Payment Information

Disability insurance provides financial support for workers who are no longer able to earn an income. Different programs have different benefit amounts, but all benefits are paid directly to the worker or a designated guardian if the worker is unable to handle money or have access to financial accounts. From the three major disability benefit providers---Social Security, Veterans Affairs and private insurers---the benefits can be lump-sum or monthly payments for the duration of the disability's time frame.

  1. Social Security Benefits Identification

    • The Social Security Administration has two different disability programs: Title II and Title XVI (16). Title II programs are for workers who pay into the Social Security fund: Their benefits are based on a percentage of their earnings over their working lifespan. Title 16 benefits are paid directly from the federal general fund and are determined annually by Congress; every Title 16 recipient receives the same benefit amount.

    Social Security Payments

    • Payments are made either as a lump sum for a closed period of disability (a condition lasting only 12 months determined after the end of the 12-month period) or as monthly benefits paid by direct deposit.

    Veterans' Benefits Identification

    • Military veterans can receive disability benefits for injuries or medical conditions contracted during their service. Benefits are based on the percentage of the body affected by the disability. Payment can range from 5 percent to 100 percent total disability. Benefits are based on the veteran's rank and pay grade at the time of discharge or benefits earned at the time of retirement. Benefits are paid by direct deposit.

    Private Insurance Identification

    • Private disability benefits vary by provider but all have one common requirement: Can the worker perform his job? If the worker is prohibited from doing his job by a disabling condition, then disability benefits are paid. Benefits can be paid either as monthly deposits or as a lump sum. Lump-sum payments usually come from insurers paying for disabling conditions brought about by negligence or accident to a worker who was not at fault. These payments are considered more of a settlement than a disability benefit payment.

    Warning

    • All program have rules concerning whether or not a beneficiary can work while disabled. Social Security has a monthly earnings cap: If the worker earns more than the cap amount, then benefits are discontinued. There's no limit to working for disabled veterans. Private insurers have different rules, ranging from no limits to earning caps, but most follow Social Security guidelines for determining how continued work affects disability benefits eligibility.

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