How Will a Car Accident Settlement Affect SSDI (Social Security Disability) Benefits?

Many individuals in South Carolina rely on Social Security Disability Insurance (SSDI) or benefits to support their financial needs when they are unable to work due to a disability. SSI and SSDI are federal programs that provide monthly benefits and financial support to those who have a qualifying disability and a sufficient work history. While these benefits are essential for many South Carolina residents, some car accident victims worry that pursuing compensation for their injuries might jeopardize their SSDI benefits.

These misconceptions around car accident settlements while receiving SSI can cause people to believe they cannot pursue compensation because they believe it will be claimed as income, which isn’t entirely true. While SSDI eligibility is not based on income but rather on your ability to work, navigating the legal and financial implications of a South Carolina car accident settlement can be complex. That’s where our team of car accident lawyers in South Carolina come in.

At The Lovely Law Firm, we have the experience and knowledge to evaluate your case, help you pursue the justice and compensation you deserve, and safeguard your SSDI benefits. Our team will guide you in structuring your car accident settlement to ensure it’s not classified as income, protecting your financial stability now and in the future. Let us help you recover from your car accident without compromising the benefits you rely on.

Will A Car Accident Settlement Affect My SSI?

If you’ve been seriously injured in a car accident in South Carolina that was caused by someone else’s negligence, receiving compensation through a car accident settlement is a critical step in recovery. However, if you also receive Social Security disability benefits, either through Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), you may wonder how accepting a car accident settlement could impact these benefits.

Both SSDI and SSI are managed by the Social Security Administration (SSA), but they are fundamentally different programs with unique eligibility requirements and purposes. When it comes to accepting a South Carolina car accident settlement, SSDI benefits will not be impacted, however your SSI may be affected.

SSI Benefits And Personal Injury Settlement

SSI, which stands for Social Security Income, is a “needs-based” government program aimed at providing financial assistance and resources to individuals with limited income and who are:

• Disabled
• Blind
• Over the age of 65

Because eligibility for SSI is tied to your financial situation, receiving a personal injury settlement could disqualify you or reduce the amount of your monthly SSI benefits, as the settlement may be considered countable income.

It’s important to take steps to protect your benefits when receiving a personal injury settlement and SSI benefits. For instance, setting up a special needs trust can help safeguard your eligibility for SSI by ensuring the settlement funds are not counted as income or resources.

SSDI And Car Accident Settlement

If you receive Social Security Disability Insurance (SSDI) benefits and have received a settlement from a personal injury or car accident case in South Carolina, you can rest assured that your SSDI payments will not be affected. You do not need to take any additional steps to continue receiving your full SSDI monthly benefits simply because you’ve received a personal injury settlement.

Why Doesn’t A Car Accident Settlement Impact SSDI?

SSDI is considered to be an “earned benefit” program, meaning that eligibility is based on your previous contributions to the workforce and your disability status rather than financial need. This program is funded through payroll taxes, specifically the Federal Insurance Contributions Act (FICA) tax for employees and the Self-Employed Contributions Act (SECA) tax for independent workers. Since SSDI benefits are not provided based on needs, receiving a car accident settlement from a personal injury claim will not count against your benefits.

Will My Medicare Benefits Be Affected?

For those receiving Medicare benefits through SSDI eligibility, your car accident settlement will not impact your Medicare coverage. Like SSDI, Medicare eligibility is based on your work history, not your income or assets.

When Do SSDI Benefits End?

Your SSDI benefits will continue unless:

• You return to work and start earning above the substantial gainful activity (SGA) limit.
• The Social Security Administration (SSA) determines that you are no longer considered to be disabled.
• You reach retirement age, at which point SSDI benefits turn into Social Security retirement benefits.

At The Lovely Law Firm, we help injured individuals understand their rights and manage the legal process to secure fair compensation without jeopardizing essential SSDI benefits. If you have questions about how your SSDI and car accident settlement might affect other aspects of your financial stability, our experienced legal team is here to help.

Can You Sue Someone On Social Security Disability?

Yes, you can pursue compensation by filing a personal injury suit against someone for causing a car accident, even if they are receiving Social Security Disability Insurance (SSDI) benefits. A person’s disability status and the SSDI benefits they receive do not protect them from being held liable for an accident if they are at fault. If their negligence caused the crash, they or their insurance provider can still be sued for damages just like anyone else.

What Damages Can Be Claimed?

If you were injured in a car accident caused by a negligent driver, regardless of whether you or they receive SSDI benefits, you have the right to pursue compensation for your injuries and other damages. Some of the damages that can be claimed include:

• Medical Expenses – Coverage for hospital bills, surgeries, rehabilitation, prescription medications, and ongoing treatment related to your injuries. This also includes future medical expenses you may have for ongoing care or rehabilitation.
• Lost Wages – Compensation for any income you may have lost due to missed work during recovery. However, this amount may be lessened due to receiving SSDI benefits.
• Loss of Future Earnings – If your injuries prevent you from returning to your previous job or earning at the same level, you may seek compensation for diminished earning capacity. This may also be a lessened amount due to receiving SSDI benefits.
• Pain and Suffering – Compensation for physical pain, emotional distress, and reduced quality of life caused by the accident or injuries sustained in the accident.
• Property Damage – Reimbursement for vehicle repairs or replacement if your car was damaged in the crash.
• Wrongful Death – If the car accident resulted in the loss of a loved one, the surviving family members may be able to pursue compensation for funeral expenses, loss of companionship, and other related damages.

At The Lovely Law Firm, we understand the complexities of managing a personal injury settlement while preserving your disability benefits, and all the questions that come with it. Our experienced team of Myrtle Beach car accident lawyers can guide you through this process, helping you pursue the compensation you deserve while ensuring your benefits remain intact.

SSDI and Car Accident Settlement: How The Lovely Law Firm Can Help You

If you receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits and were injured in a car accident that was caused by someone else’s negligence, you may be wondering how to pursue compensation without jeopardizing your disability benefits. At The Lovely Law Firm, we have extensive experience helping clients manage personal injury claims while protecting their financial stability.

Protecting Your SSI Benefits While Pursuing Compensation

One of the biggest concerns for individuals receiving SSI benefits is that a personal injury settlement could reduce or eliminate their monthly payments once they receive their settlement payout, as SSI is a needs-based program with strict income and asset limits. Our team can help you structure your settlement in a way that preserves your eligibility, such as:

• Setting Up a Special Needs Trust (SNT) – By placing settlement funds into a properly structured trust, you can prevent the money from being counted as income, ensuring continued access to your SSI benefits.
• Spending Down the Settlement Appropriately – If a trust isn’t the best option, we can guide you on legal ways to use the funds on non-countable expenses like medical equipment, home modifications, or prepaid rent.

If you are receiving SSDI benefits, your personal injury settlement will not impact your monthly payments, as SSDI is based on your work history rather than financial need. However, our legal team will still review your benefits and make sure that your settlement is maximized to cover your losses, including medical bills, lost wages, pain and suffering, and long-term disability expenses.

Comprehensive Legal Representation

At The Lovely Law Firm, we provide personalized legal guidance that is customized to your specific case. Our legal services extend beyond the courtroom and include:

• Investigating Your Case – Gather all necessary evidence to prove the other driver’s negligence and build a strong claim, including a Myrtle Beach accident report and medical records.
• Negotiating with Insurance Companies – Representing your best interests and holding insurance companies accountable for the compensation they owe. Making sure you receive the full and fair compensation you deserve.
• Litigating When Necessary – If insurers refuse to offer a fair settlement, we are prepared to take your case to court and work tirelessly to secure the compensation you deserve.

No matter your circumstances, you deserve justice after being injured in a car accident that was caused by another party. Contact The Lovely Law Firm today to schedule a consultation and learn how we can help you recover compensation while safeguarding your disability benefits.