What's the difference between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI)?

By Brent Radcliffe AAA
A:

Disabled persons can receive payments through two programs: Social Security Disability Insurance and Supplemental Security Income. Both Social Security Disability Insurance and Supplemental Security Income are administered by the Social Security Administration. Applications generally require a Social Security number, birth certificate, information on medical staff visited, and work information (if applicable). Applications are reviewed to determine if the applicant qualifies.

Social Security Disability Insurance (SSDI) provides benefits to disabled persons if they cannot currently work due to a medical condition that is expected to last at least one year. Family members of disabled workers may also be eligible to receive money. Applicants for SSDI must generally meet a minimum threshold of years worked. For example, a 44 year-old individual must have worked at least 5.5 years in order to pass the SSDI duration of work test.

Supplemental Security Income (SSI) provides benefits based on financial need, and focuses on paying disabled or blind adults and children who have limited income, as well as certain adults over the age of 65. SSI is the largest federal program providing benefits to those with disabilities. Funds for this program come from general tax revenue rather than from Social Security taxes, and are disbursed each month to those who qualify. 

RELATED FAQS

  1. How do I know what Social Security benefits I am eligible for?

    Learn what tools to use to find out which Social Security benefit programs you are eligible for and the basic requirements ...
  2. What are Social Security Credits for and how can I earn them?

    Understand the basics of the Social Security credit system, how credits are earned and how many credits are required to be ...
  3. Will I pay taxes on my Social Security payouts?

    Find out if you're one of the people who has to pay federal income taxes on the Social Security benefit you receive.
  4. At what age will I be eligible for the maximum Social Security payout?

    The year you choose for collecting your social security will play a large part in determining how much money you'll receive ...
RELATED TERMS
  1. Social Security

    A United States federal program of social insurance and benefits ...
  2. Losses and Loss-Adjustment Expense

    The portion of an insurance company’s reserves set aside for ...
  3. Section 7702

    The section of the United States Internal Revenue Code that defines ...
  4. Nonstandard Auto Insurance

    Auto insurance offered to drivers considered to carry the most ...
  5. Independent Insurance Agents & Brokers Of America

    Independent agents who shop around at different insurance companies ...
  6. Disease Management Program

    Disease management programs can help control health care expenses ...
Related Articles
  1. 8 Essential Tips For Retirement Saving
    Investing Basics

    8 Essential Tips For Retirement Saving

  2. 'Donut Hole' Essentials For The Financial ...
    Investing Basics

    'Donut Hole' Essentials For The Financial ...

  3. Tips To Beat Inflation For Near-Retireees
    Investing News

    Tips To Beat Inflation For Near-Retireees

  4. How did 27,000 investors answer to these ...
    Economics

    How did 27,000 investors answer to these ...

  5. How Advisors Can Help Address Longevity ...
    Investing Basics

    How Advisors Can Help Address Longevity ...

Trading Center