Aug 31st, 2017

The Differences Between SSI and SSDI

Fred London Law 0 Comments Social Security Disability

If you can no longer work because you have been injured or are ill, there is a good chance that you can receive financial assistance through the Social Security Administration (SSA). The SSA funds two different programs to help people who are in this exact position: Supplemental Security Income (SS)I and Social Security Disability Insurance (SSDI). Although these programs are similar in nature, there are some distinct differences that are the defining factors which determine for which one someone qualifies.

social security income

What is SSI?

SSI is a program that is strictly based upon the applicant’s financial need. The need is determined by looking at all forms of income and assets the applicant has. There is no need to have a work history or to have in any way paid into the Social Security program. This is because SSI is considered a “means-tested program” and is funded by general fund taxes rather than the Social Security trust fund.

What is SSDI?

SSDI is a program that gets funded through payroll taxes. So, in essence, everyone who works at a job where they pay taxes is regularly helping to fund the program. Since this program is funded in this manner, the SSA considers people who have paid into the system to be “insured” by it. Therefore, those are the people who can benefit from it.

Eligibility for SSI

Since SSI is based on financial need,, to be eligible for SSI, you must be able to prove that you have less than $2,000 in assets as an individual or less than $3,000 for a couple. You must also have a considerably low income.

Eligibility for SSDI

To be eligible for SSDI benefits, you must be under the age of 65 and have worked long enough to have earned enough work credits. Workers can generally earn up to four credits per year, or one for every quarter worked.

SSI Recipients may Receive Medicaid

Because of the financial need you must have to receive SSI benefits, those who receive them may also be eligible to receive Medicaid benefits as well. There is a good chance they can receive food stamps and other government assistance as well.

SSDI Recipients may Receive Medicare

Once SSDI recipients have received benefits for two years, they are eligible for Medicare rather than Medicaid.

Financial Benefits of SSI

Those who receive SSI payments, typically get payments of $733 per month for an individual if there are no other forms of income. The amount is reduced to coincide with other forms of income from which the recipient can draw.

Financial Benefits of SSDI

Those who receive SSDI payments, typically get payments of $1,165 per month. However, since these payments are based on income, some recipients can receive more than this amount.

For more information about the differences between SSI and SSDI, contact Fred London Law today.

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