Many people think of Social Security benefits as something you can receive once you reach retirement age. But there are actually several variations of Social Security benefits, including two versions of disability insurance. The first, Social Security Disability Insurance (SSDI), pays disability benefits to people who have paid into the Social Security system for a required number of years, and in some cases, it may pay benefits for select family members. The second, Supplemental Security Income (SSI), pays disability benefits based on financial need.

If a disability has impaired your health to the point where you are not able to engage in gainful employment due to a medical or physical impairment for at least a period of 12 months, you may be eligible to receive Social Security Disability Insurance (SSDI). Not everyone who feels they are entitled to receive Social Security benefits for a disability will meet the eligibility terms but it is important to understand how these benefits work should something happen.

Eligibility for Disability Benefits

Are you eligible for social security disability benefits?

If you have worked for at least 5 of the last 10 years at a job that is covered under the Social Security Act, you are likely eligible for benefits from Social Security if you become disabled. The test for eligibility is not a measure of when you can go back to a job or whether you’ve been able to find a new job, the only concern is if you are capable of doing a job that is typically open in the average workplace.

In order to apply and be accepted for receiving benefits, you must have a licensed medical provider offer proof of your disability. In situations where a diagnosis is difficult to prove through objective testing, it may be necessary to employ the help of an attorney to secure your benefits eligibility.

Related: See how Military Service Affects Social Security Benefits.

How to Make a Claim for Benefits

Any individual can file for Social Security disability benefits of their own accord. Statistically, applicants who are aided or represented by legal help may secure their benefits much faster. The process for claiming benefits can be confusing and is typically a rather long process.

You can apply either online through the SSA.gov website or by calling toll free at 800-772-1213 to make an appointment request with your local Social Security office. Claims can also be taken over the phone. Typically, it takes an hour or more to complete the application process.

You will need to provide the following data to the Social Security representative:

• Your Social Security number
• Your birth certificate
• Names, addresses and phone numbers of the doctors, caseworkers, hospitals and clinics where you sought treatment and dates of your visits
• Names and dosage of all the medications you take
• Medical records from your doctors, therapists, hospitals, clinics and caseworkers that you have on hand
• Laboratory and test results pertaining to your disability
• A summary of where you worked and the kind of work you did
• A copy of your most recent W-2 Form (or, if you are self-employed, your federal tax return for the past year

You will want to file for benefits as soon as you know you are disabled. The processing time for most benefit claimants is three to five months or longer.

Related: Social Security Benefits for Wounded Warriors (how servicemembers can receive Social Security disability Benefits while on active duty)

How Much Will You Receive?

The amount of benefits you will be eligible to receive is based on the average earnings of your lifetime. You should receive a statement of Social Security Benefit amount each year that provides an estimate of how much you would get if you become disabled. The statement also contains information about what family members may be eligible to receive should you become disabled.

Photo credit: DonkeyHotey

Military benefits can be a complicated topic and are often misunderstood by the general public. We have dealt with this topic several times on our site, as we have had some people claim that military members have it too good, and in this case, calling military members rich because their paycheck is all “play money” since it isn’t taxed and they receive free food, housing, healthcare, and sometimes even cars. The problem with that statement is that it is almost all false. But that’s OK. As we mentioned, military benefits can be a complicated topic and we can use this as an opportunity to educate the public regarding military pay and benefits.

A military member can't afford this Ferrari

So let’s look at the comment we received and discuss the benefits military members actually receive.

This comment was from an article we previously published, and I decided it was worth writing a full length response to it to better clarify the topic (see original article and comment):

Ok here’s my problem I believe military personnel are actually rich when you consider the following factors. You say that with a promotion in 5 years the average pay is around 28,000 dollars. Now at first glance, that seems like not very much at all right? That’s lower class. Except that: their housing is free, the food is free, their healthcare is free, and sometimes even their car is free. ALSO THE 28000 DOLLARS IS UNTAXED. So basically it’s their own personal PLAY MONEY. Now let’s take an officer for example. You said in 5 years it’s about 56,000 dollars. Ok, their housing is free, their healthcare is free, and their food is free and the stores on base offer discounted products of all kinds free of taxes. PLUS THEIR MONEY IS UNTAXED. WHY IS IT UNTAXED??????? When if I were to work for the Federal, State, or Local government I wouldn’t get my paycheck untaxed. Even police officers have to pay taxes.

I honestly would feel a lot more sorry for them if they were paying the ridiculous taxes everyone else has to pay. Bottom line is what would you do if your house was free, food was free, and your healthcare was free? I mean I would be saving that money to get a ferrari or something it’s ridiculous.

Some of these statements are true, but many of them are also misleading or outright false. Let’s start with taxable vs. non-taxable pay and benefits and go from there.

Taxable and Non-Taxable Pay and Benefits

Military base pay is taxed, as are many other incentives and benefits. There are times when it may not be taxed, but usually only when the servicemember is serving in a tax free combat zone, and even then, there are caps for how much tax free pay officers can earn.

Some military benefits are not taxed, including housing (Basic Allowance for Housing, or BAH) and food benefits (Basic Allowance for Subsistence, or BAS). There are several reasons for this, and one side effect is that not taxing pay and benefits reduces the value of a military pension in retirement. So it’s a double-edged sword.

Housing and Food Are Not Always “Free”

Most military members also don’t receive “free” housing and food, though some do. For example, young enlisted members often receive free room and board in dormitories and food at the chow hall. I was one of those, and while the food and housing were adequate and comfortable, it was nothing to write home about. But it was nice to have because there is no way I could have afforded an apartment and food on my $400 bi-monthly paycheck.

Free food – woo-hoo! The food allowance goes back to the days when all military members lived on base and the military provided all food and housing for the members. When more military members began living off base, the military realized it was easier and cheaper to give them a food allowance. The tradition of including food rations as part of military pay and benefits continues to this day, and the BAS level represents the amount it would cost the government to feed the servicemember. The current BAS rate is roughly $350 a month for enlisted members and $240 for officers, but it is only for the servicemember, and not his or her family.

What about base housing? Some other military members with families may choose to live on base and receive free housing. Those who live on base do not usually pay rent or utilities. Otherwise most military members receive a housing stipend called BAH and live off base. This is a tax free benefit and the rate is based on the average rent for the area, so it often is just enough to rent a small house or apartment. (The government actually acknowledges that most military members have an associated out of pocket housing expenses each month). Those who receive BAH also pay utilities out of pocket unless.

The average servicemember who lives off base pays out of pocket for both housing and utilities, and likely pays out of pocket for food, especially if they have a family. In other words, the average servicemember does not have free housing and food – they have a housing and food supplement which is part of their pay and benefits.

Free healthcare – an Extremely Valuable Benefit.

Healthcare for the member is free and most dependents are also covered at a near 100% rate (there may be some copays, depending on the service being performed). As someone who is self-employed and pays for health care out of pocket, I realize how valuable of a benefit this is. I wish I still had it now that I am out of the military.

Free Cars for Military Members?

This is one I haven’t heard before. The only people in the military who receive free transportation are those who need it for official duties, which is typically only high ranking officials. Some military members may also get the keys to one of the squadron cars if they are the officer on duty or in some other official capacity, but the cars aren’t issued to them for an extended period of time and it wouldn’t be considered much of a benefit if it means you are on call while you have the keys to the vehicle.

Let’s Put it All Together

Let’s take a look at an average enlisted member at 5 years, using your $28k salary. He or she would (on average) receive $28,000 of taxable income, plus around $750 for BAH (housing, which is not taxed and is variable by location), and $350 for BAS (food allowance, which is not taxed). They also receive free health care. So on average, they may receive in the neighborhood of $41,200 a year, with $28,000 being taxable, and $13,200 not taxable, plus healthcare benefits.

$41,200 a year comes out to $3,433 per month, or roughly $1,716 per check before taxes (military members are paid twice per month).

This certainly isn’t a poverty level income, but it’s also not a ticket to wealth either, considering roughly 70% of it is taxable, and one needs to use the remaining money for living expenses (car, gas, insurance, furniture, supporting a family, saving/investing, etc.). Supporting a family on roughly $40,000 a year is possible, but it isn’t a ticket to wealth, and certainly not enough to save up for a Ferrari. Depending on where the servicemember lives and how many people they have in their family, you could make the argument they don’t earn enough.

The reality is that most military members earn enough to lead a comfortable life, which isn’t too much to ask for someone who is on call 24/7 and can be called to defend our country on a moment’s notice.

Photo credit: Tom Wolf | Photography