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. There are no income limitations. When individuals getting SSDI reach full retirement age, they transition to Social Security's old-age program and receive the same payments through the Old-Age and Survivors Insurance Trust Fund instead of the SSDI trust fund. How to Apply for Social Security Disability: Step by Step will get you started.

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 age 65. SSI is the largest federal program providing benefits to those with disabilities – and is the only program that covers people who have never worked, or haven't worked enough hours, to qualify for SSDI. Funds for this program come from general tax revenue rather than from Social Security taxes and are disbursed each month to those who qualify. Your countable monthly income (there's a complicated formula for what counts as income) cannot exceed the Federal Benefit Rate (FBR), which was $733 per month for an individual in 2016. A few people who receive extremely low SSDI payments and have very little other income may qualify to receive both types of benefits.

RELATED FAQS
  1. What are the main differences between Social Security Benefits & Social Security ...

    Read this article to learn about the differences between SSDI and SSI benefits, including qualifications, program funding, ... Read Answer >>
  2. What are the maximum Social Security disability benefits?

    The average Social Security disability benefit amount for a recipient of Social Security Disability Insurance (SSDI) in 2 ... Read Answer >>
Related Articles
  1. Retirement

    Do You Qualify for Social Security Disability?

    When it comes to qualifying for Social Security Disability Insurance, you either do or you don’t. Here's how to find out if you do and how to apply.
  2. Financial Advisor

    Disability and Business Overhead Coverage for the Self-Employed

    What every small business owner or professional needs to know about individual and business overhead disability income insurance plans.
  3. Financial Advisor

    How Do Workers' Compensation Benefits Work?

    What you need to know about Workers' Compensation benefits.
  4. Insurance

    Group and Individual Disability Insurance: What You Need to Know

    What you need to know about group and individual disability income coverage.
  5. Financial Advisor

    How to Manage SS Disability & Retirement Benefits

    Advisors with clients who receive disability benefits can carve out a profitable niche by helping them integrate this income into a financial plan.
  6. Retirement

    Social Security Disability Benefits vs. Retirement Benefits

    Here's how to know if you should file for Social Security retirement vs. disability benefits.
  7. Retirement

    Step by Step: Applying for Social Security Disability

    Applying for disability benefits is no easy task – but it's well worth your time and effort if a disability is preventing you from earning a living.
  8. Insurance

    Choosing The Best Disability Insurance

    Social Security benefits can be hard to collect. Find out why you need disability insurance to protect your income, and learn how to choose the right policy for you.
  9. Insurance

    The Disability Insurance Policy: Now In English

    Learn to translate this complicated policy so you can rest assured you're covered.
  10. Managing Wealth

    Tips for Insuring Your Salary

    Those with high incomes really can’t afford to be without disability insurance. Here's why.
RELATED TERMS
  1. Supplemental Security Income - SSI

    A federal program that provides additional income for older and ...
  2. Disability Insurance

    A program managed by the Social Security Administration that ...
  3. Social Security Benefits

    The monetary benefits received by retired workers who have paid ...
  4. Social Security

    A United States federal program of social insurance and benefits ...
  5. Social Security Tax

    The tax levied on both employers and employees used to fund the ...
  6. Old Age, Survivors And Disability Insurance Program - OASDI

    The official name for Social Security in the United States. The ...
Hot Definitions
  1. Book Value

    1. The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated ...
  2. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
  3. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. ...
  4. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents ...
  5. Leverage Ratio

    Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to ...
  6. Two And Twenty

    A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. ...
Trading Center