Life can take unexpected turns, and if you suddenly find yourself unable to work due to a disability, it’s important to know your options for financial support. Depending on your circumstances, you may be eligible for multiple forms of disability benefits. Understanding these programs can help you secure the income you need while focusing on your recovery.

  1. State Disability Benefits (EDD – California)

If you work in California, you may qualify for State Disability Insurance (SDI) through the Employment Development Department (EDD). This program provides wage replacement benefits equal to 70%–90% of your earnings for up to one year, helping you maintain financial stability while unable to work.

  1. Employer-Sponsored Disability Plans (ERISA)

Many employers offer disability benefits through group insurance policies governed by the Employee Retirement Income Security Act (ERISA). These typically include:

  • Short-Term Disability (STD): Covers about 60% of your wages for up to six months.
  • Long-Term Disability (LTD): Kicks in after STD ends and can provide continued benefits—often at 60% of your wages—potentially until retirement age.

Each employer’s plan may differ, so reviewing your specific coverage is essential.

  1. Federal Disability Benefits (SSDI)

The Social Security Disability Insurance (SSDI) program provides benefits to individuals who have contributed to Social Security through payroll taxes. To qualify, you must have a medical condition that is expected to last at least 12 months or result in death. SSDI benefits can be a crucial lifeline if you meet the eligibility requirements.

  1. Workers’ Compensation

If your disability is the result of a work-related injury or illness, you may be entitled to Workers’ Compensation benefits. These typically include:

  • Temporary Disability (TD): Payments of two-thirds of your wages for up to two years.
  • Permanent Disability (PD): Additional compensation if your injury causes lasting impairments.

Workers’ Compensation also provides medical benefits and is designed to help you recover without facing financial hardship.

  1. Liability Insurance Claims

If your disability was caused by the negligence of a third party, such as in a car accident or unsafe premises, you may have a legal claim for compensation. This could cover:

  • Lost wages
  • Medical expenses
  • Pain and suffering

Understanding Benefit Offsets

If you qualify for multiple types of benefits, be aware that they may be subject to offsets to prevent you from receiving more income than you earned while working. For example:

  • If you receive SSDI and Workers’ Compensation, Social Security may reduce your SSDI benefits so that your total disability income does not exceed 80% of your previous wages.
  • Even with offsets, combining benefits can still provide more income than relying on a single source.

Final Thoughts: Maximizing Your Benefits

Facing a disability is challenging, but understanding your financial options can make the transition easier. If you find yourself unable to work, explore all possible sources of income to ensure financial stability while you focus on your health and recovery. Consulting with a legal or financial professional can also help you maximize your benefits and navigate the complexities of disability claims.

By taking proactive steps, you can secure the support you need and move forward with confidence.