Understanding the difference between SSI and SSDI
The eligibility requirements for SSDI benefits differ from those of SSI and it's important to understand the difference between the two.
April 14, 2013
Understanding the difference between SSI and SSDIArticle provided by Smolich & Smolich
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Despite using caution, there is always the possibility of an accident. Individuals who are seriously injured or disabled by an accident may be unable to continue working and providing for their families. Because of this unfortunately reality, everyone should be aware of their ability to obtain Social Security benefits. Knowing about Social Security benefits and how to apply for them can help you plan for a more secure financial future.
Eligibility for SSI and SSDI
There are two types of Social Security benefits available to people who are have a disabling medical condition, each of which has different eligibility criteria. The two types of benefits are Social Security Disability Insurance (SSDI) and Supplementary Security Income (SSI).
The eligibility requirements for SSI are fairly straightforward. In order to be eligible for SSI, an individual must be disabled or must be over 65 years of age. In order to qualify for this federal program, an individual must have little or no income and assets. Currently, the threshold for the asset requirement is less than $2,000 if single and less than $3,000 if married. In determining this value, the government will not consider the value of an individual's car, home or certain other assets.
The eligibility requirements for SSDI benefits differ from those of SSI. First, in order to be eligible for SSDI benefits, the individual must have worked and contributed Social Security taxes, through which he or she must have earned sufficient credits in order to be insured. Currently, a taxpayer receives one Social Security credit for every $920 earned, with a maximum amount of four credits per year.
In determining eligibility for SSDI, the number of credits needed to receive benefits depends on the age of the person when he or she becomes disabled. As of now, a person must have earned six credits during a three-year period if the filing individual is under age 24. If individuals are between the ages of 24 and 30, their total credits must equal half of all calendar quarters in the period beginning at age 21 through the date of the onset of disability. Lastly, after age 31, individuals must have earned credits for work in five years during the 10-year period ending on the date of the onset of the disability.
If the earnings requirement is met, the individual must then meet the disability requirement. The Social Security Administration considers someone disabled if he or she is unable conduct "substantial" work as a result of a physical or mental condition that is expected to last for at least one year. Moreover, even if the condition is not presumed to last over one year, the individual will be considered disabled if his or her condition can reasonably be expected to result in death.
Ensuring a more financially secure future
Unfortunately, no person is immune from disability. If you or a family member has recently become disabled, contact an experienced Social Security disability attorney. An experienced attorney will carefully review an individual's case to determine if that person is eligible for SSDI, SSI or both.