Social Security Disability Insurance and Supplemental Security Income

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SOCIAL SECURITY DISABILITY INSURANCE AND
SUPPLEMENTAL SECURITY INCOME
What Are the Differences?
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SSDI and SSI
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Both SSI and SSDI are government-based programs
designed to benefit the disabled
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• Both are managed by the
• Social Security Administration

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• However, the specific eligibility requirements
  are very different

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• One significant difference is that SSDI is only
  available to workers earning enough work
  credits
• with Social Security

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• While SSI disability benefits are available to
  low-income individuals regardless of whether they
  have earned sufficient work credits

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Social Security Disability Insurance
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SSDI benefits are funded by the payroll taxes we
see coming out of our paychecks
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• In order to be eligible for SSDI,
• each working individual must have earned enough
  work credits

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• The minimum number of credits
• is determined by your age and the date you become
  disabled

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• This translates to the requirement that you are
  between the ages of 18 and 65 and have worked at
  least some part of five of the ten years prior to
  becoming disabled

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• Social Security Disability Insurance (SSDI)
  provides income replacement for eligible
  individuals who are unable to work due to a
  long-term injury or illness that is expected to
  last at least one year or result in death

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• The eligibility requirements currently include
  the following
• five steps

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Verification of an applicants disability
Filing a claim
A recent work and duration of work test
Verification that an individual has not reached
normal retirement age
A five-month waiting period from onset of
disability
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Five-Month Waiting Period
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• The purpose of the five-month waiting period for
  SSDI benefits
• is two-fold

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First, Congress wanted to establish a time frame
that would be long enough for a short-term injury
or illness to be corrected. SSDI is meant only
for long-term illnesses.
The second purpose is to deter people who can
actually work from applying for benefits. It is
strongly encouraged that you apply for benefits
as soon as possible after the onset of any
disabling condition.
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How much are SSDI benefit payments?
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Much like Social Security retirement benefits,
the amount of your monthly benefits depends on
your record of employment earnings
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• Most SSDI recipients receive between 300 and
  2,200 in benefits

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• The average SSDI payment in 2014 is 1,148 and
  the maximum disability benefit is currently 2,642

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After you have received disability benefits for
24 months, you will automatically become eligible
for Medicare, regardless of your age
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Supplemental Security Income
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• Unlike SSDI, SSI is strictly
• a need-based program

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• This means your eligibility
• is not based in any way on
• your work history

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• To be eligible, you must have less than 2,000 in
  assets if you are single and less than 3,000 if
  you are married

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• You must also have
• very limited income

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• When determining your income,
• the Social Security Administration considers the
  cash value of food stamps, grants, and income tax
  refunds are considered income
• for SSI purposes

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• In 2014, minimum SSI benefits are 721 per month
  for an individual and 1,082 per month for couples

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SSI Eligibility
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• Each state has its own requirements and
  guidelines regarding SSI eligibility

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• For federal Social Security purposes, there are
  four criteria that must be met to be eligible for
  SSI

You must be blind, disabled, or age 65 or over
You must be either a citizen of the United
States, or meet other very narrow requirements
Your monthly income must be below a certain level
The property you own must be worth less than
2,000 for an individual, or 3,000 for a couple
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Do Benefits Pass on to Dependents?
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• Another important difference between SSI and SSDI
  is that only SSDI benefits may be passed on to
  your children, spouse, and other dependents or to
  your survivors in the event of your death

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• Also, certain family members can qualify for
  dependents' benefits (also called auxiliary
  benefits) when a disabled individual qualifies
  for disability benefits

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Auxiliary Benefits
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• If your spouse becomes disabled and is eligible
  to receive SSDI benefits, you may also be
  eligible to receive benefits if you are either 62
  or older, or you are caring for a child who is
  under 16 years old and is eligible for SSDI
  dependents' benefits

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• Another advantage of SSDI is that, if your child
  is disabled and you continue to care for that
  child, you may be eligible to continue to receive
  SSDI payments even after the child turns 16

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Learn More About SSDI and SSI in Fayetteville
Arkansas
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www.arkansas-estateplanning.com 479-443-0062