The Social Security Administration (SSA) offers two financial assistance programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Since SSDI is known for paying higher benefits, people may wonder why they should get SSI instead of SSDI.
Although it’s true that the benefits paid by SSDI are greater than those paid by SSI, there are still advantages to applying for SSI. People who do not have a work history can still receive benefits through SSI. The SSI program also provides beneficiaries with instant Medicaid benefits. Lastly, beneficiaries of SSDI can maximize their benefits by receiving both SSDI and SSI benefits.
Keep reading below as we describe why it may make more sense to get SSI instead of SSDI.
SSDI Overview
SSDI is short for “Social Security Disability Insurance.” People who have accumulated an adequate number of “work credits” are eligible to receive disability benefits under this program.
To accumulate work credits, one must make an annual salary of a particular amount and pay Social Security taxes on that salary.
Social Security Disability Insurance benefits are viewed as earned benefits, and the only people who are eligible to receive them are those who have paid into the system with their own tax funds, by paying taxes on their earnings.
There are also situations in which a disabled individual can claim these benefits based on the employment history of a spouse or parent.
The amount of Social Security Disability Insurance payments a person is eligible to receive is equal to a fraction of that individual’s average income, up to the maximum permitted level.
You do not have to demonstrate a lack of financial resources to qualify for these benefits.
SSI Overview
SSI is short for Supplemental Security Income. SSI payments do not count as benefits, and they may be provided not only to those who are disabled but also to seniors aged 65 and over as well as blind folks who are in need of additional financial assistance.
To qualify for Supplemental Security Income payments, you are not required to have a certain employment history, and the amount of these payments is not based on your previous earnings.
If your household income or countable financial resources are over the set limits ($2,000 for singles or $3,000 for couples), you will not be eligible for SSI benefits.
Difference Between SSDI and SSI
Following are some differences between the two disability programs.
Eligibility
Age, blindness, the severity of a condition, and available resources all play a role in determining SSI eligibility. On the other hand, SSDI eligibility is determined by both a person’s disability and their job record.
Payments
The payment amounts for SSI and SSDI are different. As of January 2023, the average SSI recipient may expect to receive $553. As of December 2022, the average SSDI payment was $1,358.
In 2023, a single person can receive a maximum of up to $914 in SSI benefits each month, while a married couple can receive up to $1,371. In 2023, the maximum a person can receive for SSDI is $3,627.
Medicaid vs. Medicare
Beneficiaries of SSI are, in most cases, immediately eligible for Medicaid coverage.
Beneficiaries of SSDI must wait 24 months from the date their payments began before they are eligible for Medicare. There are exceptions for individuals with ALS or end-stage renal disease, in which case there will be no waiting period.
Why Would I Get SSI Instead of SSDI?
The payments provided by SSDI are far higher than those provided by SSI. However, there are some situations where it is more logical for individuals to apply for SSI rather than SSDI. These include:
Instant Medical Coverage
Individuals who get approved for SSI instantly get medical coverage under its Medicaid program. This is a vast medical insurance program that covers everything from hospital visits to pharmaceutical medications.
No Work Requirements
SSI does not require claimants to have a work history or work credits. It is a needs-based program that primarily considers your financial resources, your age, whether you are blind, and your disability.
Maximizing Benefits
Individuals who are currently receiving SSDI may apply to get SSI benefits in order to maximize their current payments. However, a portion of their SSI payments may be reduced to account for SSI’s financial resource limits.
Can You Get SSDI and SSI at the Same Time?
It is possible to get both SSDI and SSI at the same time. When an individual is eligible for both types of disability payments that Social Security offers, they are said to have “concurrent” eligibility.
However, receiving SSDI payments may cut your SSI payout or perhaps disqualify you from receiving SSI altogether. That’s because the goals and eligibility requirements of each program are different.
In order to get payments from either SSDI or SSI, you must be disabled according to Social Security’s standards, which state that you must be unable to do your previous job due to a serious physical or mental health condition and that this condition must last for a minimum of twelve months.
The SSDI program offers benefits to disabled individuals regardless of their level of income. Your average lifetime earnings will determine your benefit amount, and eligibility is dependent on the number of years you were employed in a job that required you to pay Social Security taxes.
When it comes to SSI, however, eligibility is determined by financial necessity. People with disabilities, blindness, or who are at least 65 years old and have low incomes and few assets are eligible to receive benefits. You can qualify for SSI regardless of your work history or your payment of Social Security taxes.
However, you will not qualify for SSI if you have “countable” income that is more than the federally established threshold ($914 for singles and $1,371 for couples in 2023). These are also the maximum amounts that a person can receive from the federal government under SSI.
Conclusion
The SSA’s disability programs have been a lifesaver for many disabled people across the country. Which SSA disability program is right for you depends on many personal factors and the kind of assistance you need.
