Injured - The FindLaw Accident, Injury and Tort Law Blog

How Does SSDI Impact an Injury Lawsuit?

If you are on SSDI and are considering filing a lawsuit or pursuing an injury claim, you may be concerned about how a settlement or court award could impact your receipt of benefits. Social Security Disability Insurance is a federal program designed to assist disabled individuals that are unable to work by providing those individuals with an income source.

While SSDI will want to know if you have received wages, the general rule is that an injury settlement or court award for an injury case are not wages, UNLESS a portion of that award is meant to compensate you specifically for lost wages. Also, it should be noted that if you receive punitive or exemplary damages, or any interest on the award, these may also be concerned as unearned income.

Can SSDI Affect Your Settlement?

While your SSDI is generally safe from loss as a result of an injury settlement or court award, your settlement or award may be less than you might expect because of your SSDI. Often, injury plaintiffs are disappointed when they find out that their cases are not as highly valued as they expected. Many times, a case’s high value lies in the plaintiff’s status as a high-wage earner. If someone who makes $1,000,000 per year misses one day of work because of the injury, that one day of lost wages could be worth at least $2,700 or more. If that person misses ten days, that can add $27,000 to their case.

If you are on SSDI, there will be no wage loss to recover because SSDI covers your wages, and therefore, any settlement may feel a little bit lower than you might have expected.

Don’t Confuse SSI With SSDI

It is important to not confuse SSI with SSDI. Supplmental Security Income (SSI) is a need-based federal program that provides disabled and elderly individuals with income to supplemental SSDI or regular social security benefits. Any income or monies a person receives can have an impact on a recipient of SSI benefits. It is highly advisable for a recipient of SSI to seek the advice of an attorney regarding how to handle settlement or court award money as SSI benefits can be easily lost if a person receives a lump sum.

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