Most people know there's some kind of government program that provides disability benefits to those who qualify. But the terminology is confusing — SSI, SSDI. What are they, what's the difference, and who qualifies? Here's an overview to get you started.
Social Security Disability Insurance (SSDI)
SSDI is administered by the Social Security Administration (SSA). It pays monthly benefits if you become blind or disabled before age 65 and can no longer work.
- Funded by Social Security taxes (FICA)
- You earn "work credits" based on how much you make in a year
- The most you can earn is four credits per year
- The total credits you need depends on the age at which you became disabled and how long you've worked
For example, a person 31 or older generally must have worked at least 5 of the last 10 years and earned 20 credits in the 10 years immediately before becoming disabled.
Supplemental Security Income (SSI)
People who are aged (over 65), blind, or disabled but don't qualify for SSDI because they lack the work credits may still get SSI — but because it's a needs-based program, it has strict income and resource limits.
- Resource limitsSSI caps what you and your spouse can own — bank accounts, stocks, life insurance over $1,500, and other property. The limit is $2,000 for an individual and $3,000 for a couple. Some things don't count: your home, one vehicle, and personal effects like wedding rings.
- Income limitsThe more countable income you have, the smaller your SSI benefit. If your income is over the limit, you can't receive SSI at all.
Medical Eligibility for Both
To receive benefits under either program, you must have a medical condition the SSA defines as:
- Severe — it interferes with basic work-related activities
- Long-term — it's expected to last one year or more
- Total — you can't engage in "substantial gainful activity" for at least a year
Watch the waiting period. Even if you qualify, there's a five-month waiting period after you become disabled before benefits begin — which is why you shouldn't delay speaking with an attorney. And most first-time claims are denied: in Georgia, fewer than 30% of initial claims are approved. You can appeal within 60 days, but important steps must be followed exactly.