Supplemental Security Income vs Social Security Disability Insurance - Understanding Social Security Disability Benefits
Every year millions of Americans find themselves in a position where they are unable to work due to a disability and need to apply for federal benefits. The Social Security Administration (SSA), in addition to its retirement benefits program, has two programs designed to provide financial assistance to individuals unable to work due to a disability. The programs are Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI). Both programs offer monthly payments to persons unable to work due to a disability, but they differ in many respects. Understanding the differences between SSI and SSDI is important for disabled individuals seeking financial assistance.
SSDI Is Based on Earnings paid into Social Security
According to the SSA, a person is considered disabled if they are unable to engage in any substantial gainful activity for at least one year. This standard applies to both SSI and SSDI applicants, but the two programs work very differently from one another. One of the main differences is that SSDI payments are based on how much a formerly employed person between the ages of 18 and 65 has paid into the Social Security trust fund during the time that they were working. SSDI eligibility requires individuals to have earned enough credits through paying social security taxes. SSDI eligibility is determined by the individual's work history and the amount of social security taxes paid.
SSDI Allows for Non-Employment Income
The Social Security Administration does allow persons applying for benefits to earn a certain amount of money through employment and still be considered disabled and eligible to receive benefits. To be considered disabled for the purpose of receiving SSDI an applicant can earn no more than $1620 per month as of 2025. SSDI recipients can continue to receive income from non-employment sources such as investment income, interest, or a spouse’s income but this is not the case with SSI applicants.
SSI income and asset limits
SSI is specifically designed for individuals who don't have the work history to qualify for SSDI. Applicants for SSDI also need to have with very limited income and resources. An individual SSI applicant or a couple applying for SSI have income limits that vary by state. In Tennessee the income limit for a single applicant is $967, and couples have a $1450 per month income limit. The programs also differ in the amount of assets an applicant can own. There is no limit on allowable assets for SSDI recipients. SSI benefits are available to individuals who own assets worth $2,000 or less for an individual and $3,000 or less for a couple. This limit does however exclude a recipient's primary residence it they are a homeowner and allows them to own one motor vehicle.
Healthcare for SSI and SSDI recipients
Recipients of both Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) programs have options for healthcare coverage.
SSDI benefits and Medicare
Recipients for both SSDI and SSI benefits are eligible to receive Medicare benefits, but they are subject to a 24-month waiting period. The waiting period begins after the 5-month waiting period for disability benefits payments begins. This amounts to a 29-month waiting period. But people who are already receiving Medicare at the onset of their disability can continue their benefits. There are also exceptions for people who End Stage Renal Disease (ESRD) or Amyotrophic Lateral Sclerosis (ALS or Lou Gehrig’s disease). In these cases Medicare coverage is immediate.
SSI benefits and Medicaid
Most recipients for SSI are also eligible for Medicaid coverage. In some cases, disabled individuals approved for SSI benefits are automatically enrolled in Medicaid, but this varies by state.
Applying for Disability Benefits
The Social Security Administration's process for applying for disability benefits can take anywhere from 5 months up to two years or more for applications that have been initially rejected and need to be appealed. Visiting the local Social Security office can help applicants understand the process and gather necessary documents.
Hiring a Disability Attorney
For individuals considering applying for either benefit program, consulting with an attorney experienced with disability law can help them figure out which program they are qualified to receive///. In certain cases, an applicant may be able to receive benefits under both programs. Legal representation by an attorney can greatly increase the chances of a successful application for disability payments and save time by reducing the likelihood of an initial claim being denied.
If you are trying to figure out whether you qualify for SSI or SSDI, contact our law firm today for a free evaluation by our experienced attorney.
Jackson Law Firm is experienced with disability claims and has won disability benefits for many disabled individuals in the greater Chattanooga area. If you think you might qualify for either SSDI benefits or SSI benefits, contact us for a free consultation.
No fee unless we succeed on your claim
Our law firm works on a contingency basis. We don't ask for a retainer or money up front. We only get paid when we are successful with your case and win your disability claim or appeal.