Social Security vs Social Security Disability

I am 65 and on Social Security. I have Medicare Part-A and B. My wife is 62 (birthday in February) and has a medical problem that would probably get her SSD. Because of her illness, she cut her work hours from 40 to 24. The only reason she is still working is her employment pays 100% of her medical coverage. This coverage also includes me. See I have been suffering from cancers.

In a recent conversation with my wife, she said she would like to work for another year (August 2010). My question is this: should she just retire and collect Social Security or would it be better for her to go out on medical and collect SSD?

Currently our insurance works like this: her insurance is my primary; Medicare is my secondary.
When she leaves work, she will need to get a policy until Medicare kicks in. If she leaves work in August,2010, we would need insurance for her for about 18 months.
With me: When she leaves work, Medicare would be my primary and I would need to get a supplemental insurance.

If it wasn't for health care needs, I think our overall finances are okay to live out the rest of our lives. But this Insurance business really has me worried financially.

Thanks and I appreciate your feedback.
Sam

SamCec,

I am sorry to hear of your and your wife's medical problems. These things can sure take a lot of money, and they take a lot of time and effort.

It is unusual when an employer medical plan is the primary insurance for a beneficiary eligible for Medicare. And having the employer pay 100% of the insurance premium, today is virtually unheard of. I think you should hang on to that policy as long as possible.

Are you collecting SS benefits?

SSA has a calculator to help you estimate your SS Retirement benefits. http://www.ssa.gov/estimator/

Most likely you could make an appointment to talk to an SSA rep that could work on an estimate for Retirement, and for Disability, then you would have some numbers with which to go forward. You can find your nearest SS office here: https://secure.ssa.gov/apps6z/FOLO/fo001.jsp

Often SSD takes some time like 18 months or more before a decision on qualifying for benefits. Then if your application for SSD benefit is denied, and you appeal that takes more time. Here is a link to the SSA site that discusses Disability: http://www.ssa.gov/pgm/links_disability.htm

Here is a link to a long list of Q&As about SSD: http://ssa-custhelp.ssa.gov/cgi-bin/ssa.cfg/php/enduser/std_alp.php?p_lva=&p_li=&p_page=1&p_pv=&p_prods=&p_cv=1.105&go=GO&p_hidden_prods=&cat_lvl1=1&cat_lvl2=0&p_hidden_prods=&p_search_text=&p_new_search=1&search_type=answers.search_nl

clydewolf: thank you for your reply. I might have mis-worded my question but it wasn't about me. It was about my wife.

Let me restate my question in a different way:
If my wife needs to leave work because of her illness, would it be better (financially) for her to go out on Social Security Disability or should she just take regular Social Security?

Thank You and I am sorry if I confused you on what I was asking.
Sam

SamCec,

OK, SSA has the answers for your wife. She (or you) could put her numbers into the calculator identified earlier.

She (and you) could make an appointment to discuss the possibilities with an SSA Rep.
They do both in office and telephone interviews.

There needs to be much more information known before anyone could tell you which way your wife should go, retirement or disability.

Use the calculator for your wife's retirement benefit estimate.
Contact SSA regarding the disability aspects.