One question we often get from personal injury plaintiff attorneys is: “Will receiving a settlement impact SSDI (Social Security Disability Insurance)”?
First, you need to ensure that your client is receiving SSDI and not Supplemental Security Income (SSI). Why is this distinction so important? Because a client’s SSI eligibility can be impacted when you send them a settlement check due to the income and asset limits imposed by SSI.
On the other hand, SSDI is an entitlement benefit that the client is eligible to receive because he or she has paid into the system through their payroll taxes over the years.
If the client receives a personal injury settlement and the client is receiving SSDI and not SSI, then the SSDI will not be affected. If that’s the only benefit your client is receiving and they will be a recipient of a settlement check, you can disperse the settlement funds without worrying about any impact it will have on their SSDI eligibility.