Getting hurt on the job or being disabled, which renders a person unable to work, is a serious predicament. To assist in this serious event, the federal government, working with the state government, provides assistance and benefits to disabled members of society by implementing SSDI and SSD benefits. However, the two disability-related aid offered by the government are different.
Although SSD and SSDI are both programs that provide financial assistance to people who cannot work due to a disability, there are many differences in their benefits and requirements.
What is SSDI?
SSDI stands for Social Security Disability Insurance. The social insurance program benefits people who have worked and paid Social Security taxes. To generally qualify for SSDI, the applicant must meet the following requirements:
- The applicant must have a disability that prevents them from working.
- The applicant’s disability must be expected to last for at least 12 months or result in their death.
- The applicant must have worked and paid Social Security taxes for several years. This is calculated using the “recent work” test and/or “duration of work” test.
- A “recent work” test based on the age at the time a person becomes disabled (which generally requires that people have worked five out of the ten years before they become disabled); and
- A “duration of work” test to show the person has worked long enough under Social Security’s rules (this generally requires that the person have an average of six years of work if they are between ages 30 and 60. People ages 27 and younger need three years of work).
What is SSI?
SSI stands for Supplemental Security Income. It is a means-tested program that provides benefits to people with low income and resources who are disabled. To qualify for SSI, the applicant must meet the following requirements:
- The applicant must have a disability that prevents them from working.
- The applicant must have low income and resources, which are defined below:
Resources
To qualify for SSI, an individual’s resources can total up to $2,000, and couples’ resources can total up to $3,000. Resources include cash, money in bank accounts, real estate, and investments like stocks and bonds.
Here are some things that are included as resources for SSI:
- A person’s first vehicle;
- A person’s home they live on and the land where it is located;
- Life insurance policies with a face value of $1,500 or less;
- Burial plots for the applicant and immediate family members; and
- The first is $1,500.00 in burial funds for the applicant and up to $1,500 in burial funds for the applicant’s spouse.
Income
Under Social Security Administration (SSA) rules, “income” is defined as money received, including Social Security benefits, pension, and wages, and may include food and shelter value. The income a person receives each month determines whether that person can receive SSI benefits. Children will have some of their parent’s income and resources included in determining their SSI benefit eligibility.
Below is a table that summarizes the key differences between SSD and SSDI programs:
Characteristics | SSDI | SSI |
Eligibility requirements | Applicant must have worked and paid Social Security taxes | Applicant must have low income and resources |
Benefit amount | Based on the applicant’s earnings history | Based on the applicant’s living expenses |
Automatic eligibility for Medicare | Yes, after 24 months of receiving benefits | No |
In addition to the differences listed above, there are also some other things to keep in mind when comparing SSD and SSDI:
- SSDI benefits are typically higher than SSI benefits.
- SSDI benefits are not subject to the same income and resource limits as SSI benefits.
- SSDI beneficiaries are automatically eligible for Medicare after 24 months of receiving benefits.
- SSI beneficiaries are not automatically eligible for Medicare but may be eligible for Medicaid.
If an applicant is considering applying for disability benefits, they must understand the difference between SSD and SSDI. This is vital so an applicant can properly assess the requirements and eligibility guidelines they must fulfill to qualify and get the financial assistance they need.
If you or a loved one is eligible to claim Social Security Disability (SSD), you can count on us to assist you in filing your claim. At McKown and Myers, it’s our job to help Hoosiers like you get the compensation they need to get medical treatment and support their families. We’re here to answer your questions about your SSD application – call 765-668-7531 or complete our contact form here. There’s no obligation – we’re here to help.