Distinction Between SSDI and SSI
Both social security income and social security disability insurance are federal income assistance programs. They are managed through the social security administration and are meant to support people with disabilities.
Exactly which plan is best for you when you have a disability?
- Social security disability insurance is funded by social security taxes and FICA taxes.
- SSI or supplemental security income, is financed by general tax revenues.
- This is not social security.
Let me explain the social security disability insurance program and how it may help you?
SSDI is for those individuals that have had a long work history and have been paying into the social security for a number of years. A person needs to have been employed for a total of 5 years during the last 10 years.
This type of insurance is for those individuals that have been seriously disabled and are unable to work and earn a salary. It’s the ideal program for any individual between the ages of 18 and 65 that has an injury that has them disabled and unable to work.
Now you’re going to have to meet the social security administrations guidelines of a disability or even blindness. SSDI pays benefits to the disabled person as well as certain members of their family too. All of this is possible provided that you work the required amount of time and paid your social security taxes.
Your SSDI benefit is based or calculated on how much you earned during your working years. It’s like the system that is used to calculate your retirement benefits.
So exactly what is SSI and how can it help you?
SSI supports women and men that have little or no income and not many resources. This program provides money for basic needs such as food, clothing and shelter. Supplemental security income on pays money based on monetary need. Most people that qualify for this program fall under the following criteria.
- People who are blind
- People that are 65 or older
- People that are disabled and have a medical condition
SSI benefits are basically the same across the country.
Your benefits are calculated by counting specific assets that you possess and subtracting that “countable income” from the federal benefit rate. SSI is usually helpful for those people that aren’t able to qualify for SSDI.
Either way, if it’s SSDI or SSI, the social security administration will collect all your information to determine if you meet the requirements for either program.
