How Will a Car Accident Settlement Affect Social Security Disability Insurance (SSDI) Benefits? - SSI and Car Accident Settlements (2024)

May 10, 2024 |

Have you been injured in Florida and are concerned about how a personal injury or car accident settlement might affect your Social Security Disability Insurance (SSDI) or SSI (Social Security) benefits? The good news is, in Florida, receiving a personal injury settlement won’t jeopardize your SSDI benefits – but could impact your SSI payments. can help you pursue the compensation you deserve for your injuries while protecting your valuable government benefits.

How Will A Car Accident Settlement Affect My SSDI Benefits

In Florida, receiving a personal injury settlement won’t affect your Social Security Disability Insurance (SSDI) benefits. SSDI is a federal program administered by the Social Security Administration (SSA) and focuses on your disability and work history, not your current income or resources.

Here’s a reminder of how SSDI works:

• Eligibility: Requires a qualifying disability and sufficient work history with Social Security taxes paid.
• Benefits: Based on your average lifetime earnings and can eventually qualify you for Medicare after 24 months (except for ALS, which qualifies immediately).

You can pursue your personal injury settlement with the peace of mind that it won’t jeopardize your SSDI benefits in Florida.

What Is The Difference Between SSDI And SSI?

SSDI and SSI are both disability programs from the Social Security Administration, but they differ in who qualifies and what benefits are offered. SSDI is like an insurance program based on your work history and disability, providing higher benefits and eventually Medicare. SSI is a needs-based program for disabled, elderly, or blind individuals with limited income and resources, offering a fixed benefit and often qualifying you for Medicaid.

Some Facts About SSDI and SSI

• Think of SSDI as an earned benefit. You qualify based on your work history and recent Social Security tax contributions. The more you’ve worked and paid into the system, the higher your benefit amount will be.
• It’s similar to an insurance program – you pay in while you’re healthy, and it provides financial support if you become disabled and can’t work anymore.
• To qualify for SSDI, you must have a medically-determinable disability that is expected to last at least one year or result in death. You also need a sufficient number of work credits earned recently (the exact number depends on your age when you become disabled).
• SSDI benefits are typically higher than SSI and can increase over time based on cost-of-living adjustments.
• After receiving SSDI for 24 months (except for ALS, which qualifies immediately), you become eligible for Medicare, the federal health insurance program for seniors and people with disabilities.
• SSI is a needs-based program, meaning it’s for individuals with limited income and resources who are also blind, elderly (age 65 or older), or disabled.
• The benefit amount for SSI is the same for everyone who qualifies and is based on the federal benefit rate, with potential increases for living in a high-cost area.
• There is no work history requirement for SSI, but you must meet strict income and resource limits to qualify. Resources include things like cash, stocks, bonds, and even the value of a car or other personal property (except for your primary residence). This is why an injury settlement may impact your eligibility.
• SSI often qualifies you for Medicaid, the federal and state health insurance program for low-income individuals and families.

How Does Getting A Lump Sum Accident Settlement Affect My Social Security Benefits?

The impact of a lump sum accident settlement on your Social Security benefits depends on the type of Social Security benefit you receive:

• Social Security Disability Insurance (SSDI): Good news! Receiving a personal injury settlement generally does not affect your SSDI benefits. SSDI is based on your work history and disability status, not your current income or resources. So, a lump sum settlement won’t cause a reduction or stop your SSDI payments.
• Supplemental Security Income (SSI): This is where things get trickier. SSI is a needs-based program for low-income individuals with disabilities or those over 65. Since a large lump sum settlement increases your resources, it could potentially:
  • Reduce your SSI benefits: The SSA might consider part of the settlement as income, leading to a decrease in your monthly SSI payment.
  • Eliminate your SSI eligibility altogether: If the settlement amount pushes your total assets above the SSI resource limit, you might no longer qualify for SSI benefits.

Here’s what to do:

Consult with our nearby car accident attorneys: If you’re receiving SSI and considering a car accident settlement, discuss strategies with your lawyer to protect your benefits. In Florida, you may be able to set up a special needs trust to manage the settlement funds without affecting your SSI eligibility.

How Can I Protect My Social Security When Receiving An Injury Settlement In Florida

Since SSDI (Social Security Disability Insurance) isn’t affected by your current income or resources, a personal injury settlement won’t directly impact your benefits. However, it’s important to understand the distinction if you also receive Supplemental Security Income (SSI).

Here are some tips to manage your settlement without affecting potential SSI benefits:

• Spend down strategically: If your settlement pushes you over the SSI resource limit, consider using some of the funds for approved expenses that reduce your countable resources. This could include paying off debt, making home modifications for accessibility, or prepaying rent or medical bills.
• Set up a special needs trust: A special needs trust is a legal tool that allows you to manage the settlement funds for your benefit without affecting your SSI eligibility. A trustee manages the trust and distributes funds for approved expenses that SSI doesn’t cover, such as education, therapy, or assistive technology. Consulting with an attorney is crucial for setting up a special needs trust correctly.

Will I Lose My Social Security If I Get An Accident Settlement In Florida?

Receiving a personal injury settlement could potentially lead to losing or having your SSI benefits reduced. That’s because SSI (Supplemental Security Income) is a needs-based program for low-income individuals with disabilities or those over 65. The Social Security Administration (SSA) considers both your income and resources when determining your eligibility and benefit amount.

Here’s how a settlement might impact your SSI:

• Reduced benefits: The SSA might see part of the settlement as income, leading to a decrease in your monthly SSI check.
• Loss of eligibility: If the settlement amount pushes your total assets above the SSI resource limit, you might no longer qualify for SSI benefits altogether.

Contact An Experienced Personal Injury Lawyer in Florida for Help

Don’t let concerns about your Social Security benefits prevent you from seeking the compensation you deserve. understand the complexities of personal injury law, settlements, and their impact on Social Security programs. Contact us today for a free consultation to discuss your case and explore strategies to protect your benefits. We’ll fight to get you the maximum compensation you deserve.

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