7 Mistakes to Avoid When Applying for Social Security Benefits

Many people make the mistake of waiting too long to apply for Social Security disability benefits, according to Allsup which represents tens of thousands of people in the Social Security Disability Insurance (SSDI) process each year.

"If you have become disabled and can no longer work for 12 months or longer, then you can and should apply for SSDI as soon as possible," said Ed Swierczek, senior claimant representative. "Many people make the mistake of thinking they need to wait until some specific time period has passed. This simply isn't true."

SSDI is a federally mandated insurance program overseen by the Social Security Administration (SSA) that provides monthly benefits to individuals who are under full retirement age (age 65 or older) and who can no longer work because of a disability (injury, illness or condition) that is expected to last for 12 months or is terminal. Individuals must have paid FICA taxes to be eligible. More details are provided in the "SSDI Overview" on Allsup.com.

Reasons For The Confusion

There are a number of reasons people might think they need to wait to apply for SSDI benefits, Mr. Swierczek said. For example, claimants might think they have to wait one year after their disability to apply in order to confirm the disability is long term.

"There are a number of ways to confirm that a disability is long term, including a doctor's diagnosis and medical evidence of a chronic condition or disease, and terminal illness," he said. "You don't need to be disabled and unable to work for a year before you apply."

Another reason people may stall is that they already have private long-term disability insurance coverage. "There are a number of benefits to applying for SSDI, even if you have private LTD coverage," Mr. Swierczek said. "One of those is that it freezes your earnings record for the years you are disabled, which can protect your Social Security retirement benefits." More information on the benefits of SSDI can be found in the section, "Why You Want SSDI," on Allsup.com.

Another reason for the confusion is the five-month waiting period for receiving SSDI cash benefits.

As Mr. Swierczek explains, "If the Social Security Administration approves SSDI benefits for you, there is an automatic five full months waiting period required before you can in fact receive those cash benefits. But this five-month waiting period is just for receiving the benefits. It does not determine when you can apply."

Another time element that can confuse SSDI applicants is the 12-month time limitation for receiving retroactive benefits. This is important and carries risks of lost income for someone who waits a long time to apply for disability benefits.

Here's an example to illustrate:

§ Ms. Smith became disabled and quit working in August 2005.

§ She did not apply for Social Security disability benefits until July 2007.

§ She was awarded benefits in April 2008.

§ The Social Security Administration determines that Ms. Smith's date of onset is Aug. 12, 2005. However, she did not apply until July 2007. The SSA will only award benefits going back 12 months from that date (July 2007 back to July 2006).

§ This means Ms. Smith's benefits will not go any farther back. So if she had applied when she first became disabled--she would have been entitled to several additional months of benefits.

Don't Wait to Get Started

One important reason not to wait is that the process of applying for SSDI can take several months, and in some cases up to two years or more, to receive an award from the SSA.

"There are a number of factors in the delays to getting SSDI benefits. But it's most important for people to realize that once they quit work because of a disability, their situations are not likely to get easier -- but rather more complex," Mr. Swierczek said. "Apply for SSDI sooner rather than later because it puts you on the path toward a better future."

For more information about the SSDI process, including "Seven Mistakes to Avoid When Seeking Social Security Disability Benefits," (http://www.allsup.com/About-Us/News-Room/Current-News/Seven-Mistakes-to-Avoid-When-Seeking-SSDI.aspx?=PRW4) go to Allsup.com.

Identity Thefts Help Crooks Rob Banks by Phone

A new federal indictment in New Jersey demonstrates how anyone can rob a bank by telephone.

On November 24, 2008, the U.S. Attorney for the state of New Jersey announced the arrest of multiple defendants “charged with engaging in an international conspiracy to deplete millions of dollars from U.S. victims’ home equity lines of credit (HELOC) using personal information obtained through identity theft and unauthorized computer access.” Those named in the case are alleged to have stolen financial account information and funds by calling the bank and impersonating real customers from institutions such as Citibank, JPMorganChase, Wachovia, Washington Mutual, Bank of America, Navy Federal Credit Union, Pentagon Federal Credit Union, U.S. Senate Federal Credit Union, the State Department Federal Credit Union, and dozens of other financial institutions. Those indicted are estimated to have successfully stolen more than $2.5 million from innocent customers of banks and credit unions, and have unsuccessfully attempted to steal approximately $4 million more.

According to the New Jersey U.S. Attorney’s Office, the defendants “routinely traded confidential customer information such as Social Security numbers, mother’s maiden names, and online banking passwords over e-mail; impersonated bank customers through a process known as “social engineering”; used technology to disguise caller identification information; and changed customer address information in bank files. Proceeds from the scheme, which currently exceed at least approximately $2.5 million, made their way to conspirators in Japan, Nigeria, Canada, South Korea, among other countries.”

“The facts as alleged by the U.S. Attorney unfortunately demonstrate that the warnings in my repeated testimonies before the United States Congress over the last decade have come true,” said InsideIDTheft.info editor Rob Douglas. “Americans’ financial accounts are not being protected by the financial industry. Anyone can rob a bank by phone.”

Mr. Douglas, an expert on the use of social engineering and “pretext” phone calls designed to steal financial account information and funds by phone, has repeatedly warned of the threat posed to the financial services industry by social engineering and pretext calling. Douglas is also an expert on the use of Caller ID Spoofing, also allegedly used in the NJ case. His testimonies – both state and federal – have resulted in a number of laws being passed. Yet, Douglas notes that the majority of banks are still easy picking for identity criminals and there is not enough being done by the financial services industry to protect the security of Americans’ funds.”

InsideIDTheft.info advises all Americans to do the following to protect financial accounts:

1) Never provide account information in reply to an email or phone call purporting to be from your bank. Reputable banks will never ask you to provide information by phone or email.

2) Use alphanumeric passwords and PINS for both telephone and web account access. Never use mother’s maiden name or other biographical data.

3) Monitor all financial accounts on a weekly basis to spot fraudulent transactions.

Fast-Food Survey From Animal-Rights Group Should Be Ignored

Today, the nonprofit Center for Consumer Freedom warned health reporters and editors about a deceptive "survey" of fast-food meals being distributed by an animal rights group calling itself The Cancer Project. As reported in this morning's Los Angeles Times, the Cancer Project survey recommends meatless meals such as veggie burgers and cheeseless bean burritos as the only way to avoid eating "unhealthful" fast food.

Center for Consumer Freedom Director of Research David Martosko said: "It's important to distinguish animal rights propaganda from genuine health advice. This so-called Cancer Project is basically an offshoot of PETA. Nothing more."

The Cancer Project is led by Neal Barnard, a past president of The PETA Foundation. More than two-thirds of the Cancer Project's budget comes directly from the wealthy founder of the Animal Rights Foundation of Florida. The Cancer Project's parent organization, the Physicians Committee for Responsible Medicine, has also received more than $1.3 million from PETA.

Earlier this year, The Cancer Project demanded that hot dogs be excluded from the National School Lunch Program. The single biggest study ever to examine meat and colon cancer diagnoses, a 2004 Harvard University project, found no link at all between the two.

Martosko added: "It's pure fiction to promote veggie burgers and bean burritos as a cancer-prevention strategy. This is just as much a part of the animal rights agenda as doing away with circus elephants and seeing-eye dogs. If you wouldn't take dietary advice from PETA, you shouldn't trust this 'Cancer Project' group either."

Interviews and reactions to The Cancer Project's survey are available. For a backgrounder on the Physicians Committee for Responsible Medicine (The Cancer Project's parent group), see http://tinyurl.com/PCRM7things

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