Obtaining approval of Social Security Disability Insurance may take great time and effort, so it is natural to have concerns about losing it unnecessarily. Given that SSDI has strict requirements for eligibility, falling short of these qualifications could deprive you of benefits.
Sometimes an event that drops you from SSDI eligibility is actually a welcome change in your life. Nonetheless, you should know what Social Security expects from you so a SSDI loss is not an unfortunate surprise.
You surpass income thresholds
Social Security imposes strict limits on how much income you can earn while receiving disability benefits. If your earnings exceed the annual limit, the agency will determine that you engaged in substantial gainful activity and terminate your benefits. Also, you must report all income changes promptly so Social Security does not believe you are hiding income.
Your health improves
People often need SSDI because they cannot earn a living due to disability. However, some patients can recover lost physical abilities and mental functions over time.
Social Security periodically reviews your case to determine if you still have a qualifying disability. If the evidence shows your health has improved and you can engage in substantial work, your payments will cease.
You enter certain institutions
According to Social Security, your SSDI and other Social Security benefits generally stop if you enter a public institution where you receive services at public expense, such as a prison, jail or certain public hospitals or facilities. Benefits may resume after your release, though they may not be automatic, particularly after incarceration.
You reach retirement age
This is actually not a cessation of your disability benefits, but a reclassification. Your disability benefits automatically convert to regular retirement benefits when you reach full retirement age. The amount you receive remains the same, but the category changes. You will also no longer undergo disability reviews.
It is possible that your SSDI will come to an end at some point. Still, you should have a firm grasp on when your SSDI eligibility will terminate so you do not lose out on benefits that you still need.