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Home » Long-Term Care » What’s the Difference Between SSI and SSDI?

What’s the Difference Between SSI and SSDI?

August 11, 2010 by Larry Parman, Attorney at Law

Social Security Disability Insurance (SSDI) and Social Security Insurance (SSI) are two types of disability benefits offered by the Social Security Administration (SSA). In order to be eligible for either type of benefit you must meet SSA disability guidelines and be unable to work for income.

Similarities

Both SSDI and SSI offer supplemental income to individuals who are disabled. Your disability may be mental or physical as long as it is deemed enough to keep you from working a job. When you apply for either benefit, you may be denied and have to offer up additional proof of disability. You can do so through an appeals process.

Differences

Social Security Disability Insurance (SSDI) is run by the SSA. The state is not involved in defining your status of disability. Eligibility for SSDI is based upon work history. Every American earns four credits for every year of work. These credits accumulate toward social security benefits, which are paid to older citizens. These credits can also apply to SSDI benefits. In order to receive this disability benefit you must have at least five years of work credits in the ten years before you became unable to work. SSDI is not based upon income.

Although Social Security Insurance pays disabled benefits like SSDI, it is administered differently. This is because SSI is not based upon your work history. This type of insurance is for low income individuals. SSI is a Social Security Administration program, but it is also dependent upon funding from state governments. Your state will have a say in your disability status and the benefit amount you receive. To receive SSI you must have a low income. That amount is set by the state in which you reside. You must also have a limited amount of property excluding your house and car. SSI recipients not only receive aid from the federal government, they may also receive a state supplemental payment, Medicaid, assistance with food costs, and home care.

Larry Parman
Attorney at Law

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Larry Parman, Attorney at Law
Larry Parman, Attorney at Law
Founder and Owner at Parman & Easterday
After helping his own family deal with a lengthy probate and the IRS following his father’s untimely death in a farm accident, Larry Parman made a decision to help families create effective estate plans designed to reduce taxes, minimize legal interference with the transfer of assets to one’s heirs, and protect his clients’ assets from predators and creditors.
Larry Parman, Attorney at Law
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Filed Under: Long-Term Care Tagged With: Charitable Giving, living trusts, oklahoma special needs trusts, Postmortem Planning

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