Understanding the Differences Between SSDI and SSI: Which One is Right for You?

What are SSDI Benefits?

Social Security Disability Insurance (SSDI) is a program run by the Social Security Administration (SSA) that provides financial assistance to individuals who are unable to work due to a severe, long-term disability. Simply put, SSDI is like an insurance policy you've been paying into while you worked, through your Social Security taxes. If you become disabled and can no longer work, SSDI benefits help replace some of the income you’ve lost.

Who is Eligible for SSDI?

To be eligible for SSDI, you need to meet certain requirements:



1. Work Credits: You must have worked long enough and recently enough, paying Social Security taxes, to qualify. 
2. Disability: You must have a disability that is expected to last at least one year or result in death. The SSA has a strict definition of disability, which means your condition must prevent you from doing any substantial gainful activity (SGA).
3. Inability to Work: Your disability must prevent you from performing the work you used to do or any other type of work.

How Are SSDI Benefits Calculated?

• Benefits Amount: The amount you receive in SSDI benefits is based on your average lifetime earnings before your disability began. Generally, those with higher earnings histories receive higher benefits.
• Medicare: After receiving SSDI benefits for two years, you become eligible for Medicare.



What are reasons my application for SSDI benefits can be denied?

1. Lack of Work Credits

• Eligibility: SSDI requires a certain amount of work history, which might not be possible for younger individuals, stay-at-home parents, or those who haven't worked consistently. If you don’t have enough work benefits you may be eligible for Social Security’s other program known as SSI. SSI is designed for individuals who haven't earned enough work credits to qualify for SSDI. 
• SSI Option: SSI is based on financial need, not work history. It provides benefits to those who are disabled, elderly and have limited income and resources.

2. Social Security finds you are not disabled.

• Disability as defined by SSA: Social Security's 5-step evaluation process determines disability by assessing if the individual is working above a certain income level, whether their impairment is severe and listed as disabling by the Social Security Administration, and if they can perform past work. If not listed, they assess if the person can do any past relevant work despite their condition. Finally, Social Security considers age, education, work experience, and medical limitations to determine if the individual can adjust to any other work; if not, they are considered disabled.

What are SSI benefits?

SSI is a crucial program for those who don’t qualify for SSDI due to insufficient work history. While SSDI is often preferred because it typically offers higher benefits and leads to Medicare coverage, SSI provides an essential safety net for many who would otherwise have no support. Here are the key details:



• Income and Resource Limits: To qualify for SSI, your income and resources must fall below certain limits. The program is designed to assist those who are in the greatest financial need.
• Benefits Amount: The amount you receive is determined by federal and state guidelines (not a claimant’s work history), and it’s often less than SSDI. The maximum federal SSI payment for an individual in 2024 is $914 per month.
• Medicaid: Individuals who qualify for SSI are typically eligible for Medicaid, a program that provides health coverage for those with low income.

Key Differences Between SSDI and SSI

• Eligibility: SSDI is based on work credits and your earnings history, while SSI is based on financial need.
• Benefit Amounts: SSDI generally offers higher monthly benefits, reflecting your past earnings. SSI benefits are lower and designed to meet basic needs.
• Health Coverage: SSDI beneficiaries receive Medicare after two years, whereas SSI beneficiaries are often eligible for Medicaid immediately.
• Financial Need: SSI is for people with very low income and limited assets. Even if someone is eligible for SSDI, their SSDI benefits might be low due to a minimal work history, and they could potentially qualify for SSI to supplement their income.
• Dual Eligibility: Some individuals can receive both SSDI and SSI benefits if their SSDI payments are below the federal benefit rate for SSI. This is known as "concurrent benefits."

3. Immediate Health Coverage

• Medicaid: SSI beneficiaries often qualify for Medicaid automatically in most states, which provides immediate health coverage



Which Program Should I apply for?

Choosing between SSDI and SSI depends on your specific circumstances:

• If You Have a Sufficient Work History: If you've worked consistently over the years and paid into Social Security, SSDI may be the better option for you. It generally offers higher benefits and access to Medicare after two years. There are also no income or asset limits. 
• If You Have Limited Income and Resources: If you haven’t worked enough to qualify for SSDI or have very low income and resources, SSI might be the appropriate choice. It’s designed to help those who are in the greatest financial need.
• Applying for Both: It’s also possible to qualify for both SSDI and SSI, depending on your work history and financial situation. This is known as concurrent benefits.



How to Decide

The best way to determine which program is right for you is to assess your work history, income, and resources. Consulting with a Social Security Disability attorney can also help clarify your options and guide you through the application process.



Conclusion

Understanding the differences between SSDI and SSI is crucial in making the right choice for your financial and healthcare needs. Both programs offer essential support for individuals who are unable to work due to a disability, but they serve different purposes and have different eligibility requirements. If you’re unsure which program is best for you, consider seeking legal advice to help navigate the complexities of the Social Security system.

For more information or to discuss your specific situation, feel free to contact our office. We're here to help you every step of the way in securing the benefits you deserve.