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. 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 ...
  2. 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 ...
  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. Premium to Surplus Ratio

    Net premiums written divided by policyholders’ surplus. The premium ...
  3. Combined Ratio

    A measure of profitability used by an insurance company to indicate ...
  4. Policyholder Dividend Ratio

    The policyholder dividend ratio is a measurement of the profitability ...
  5. Overall Liquidity Ratio

    A measurement of a company’s capacity to pay for its liabilities ...
  6. Reinsurance Recoverables to Policyholder Surplus

    The amount of incurred losses covered by reinsurers compared ...
Related Articles
  1. Whether you're a saver or a financial advisor who want to give their clients a leg up, these 8 tips are essential for financial planning.
    Investing Basics

    8 Essential Tips For Retirement Saving

  2. The Medicare Part D donut hole can confound the best of us. Here's what financial advisors and their clients should know.
    Investing Basics

    'Donut Hole' Essentials For The Financial ...

  3. How can investors close to retirement protect the purchasing power of their savings? Here are some tips for near-retirees and their financial advisors.
    Investing News

    Tips To Beat Inflation For Near-Retireees

  4. We asked more than 27,000 investors across 20 countries questions related to financial issues, from retirement to savings to asset allocation.
    Economics

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

  5. Financial advisors can help clients manage longevity risk with a variety of strategies and products. Here's a look.
    Investing Basics

    How Advisors Can Help Address Longevity ...

Trading Center