Additional Advantages of Receiving Social Security Benefits

The primary reason people submit a claim for Social Security benefits is for the cash benefit itself. But, the cash benefit is not the only reason to submit a claim. If your claim is approved, you not only receive the cash benefit, you could also receive an earnings record freeze and Medicare.

An earnings record freeze will protect your future Social Security retirement benefit. When you retire, Social Security divides your total FICA contributions by all of the years you were employed and unemployed. If you are disabled and do not have an earnings record freeze, there will be a number of zeros in that equation to bring down that average. If you do have an earnings freeze, however, Social Security will “freeze” your earnings record at the point Social Security determined that you are disabled and will not hold the unemployed time against you when calculating your retirement.

Also, after two years of Social Security Disability entitlement you can automatically qualify for Medicare. The two year wait is designed to coincide with employer health plans and the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA allows you to stay on your past employer’s health insurance coverage after leaving the job for up to 18 months. If you are disabled, you should file immediately in order to avoid large gaps in health care coverage.