Navigating the landscape of disability benefits in the United States can be complex, especially when distinguishing between Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Understanding the differences, eligibility criteria, and potential for concurrent benefits is crucial for individuals seeking financial assistance due to disability.
SSDI and SSI provide necessary financial support to individuals who cannot work due to severe medical impairments. SSI is a need-based program for people with disabilities and little or no income or assets. If you’re considering whether to file for SSI or SSDI concurrently (at the same time), you should first ensure you meet Social Security’s definition of disability.
Social Security considers you disabled if:
- You cannot do work that you did before;
- Uou cannot adjust to other work because of your medical condition(s); and
- Your disability has lasted or is expected to last for at least one year or to result in death.
How SSDI and SSI Define Qualifying Disabilities
The basic definition of a qualifying disability is very simple: Social Security defines a qualifying disability as “the inability to engage in any substantial gainful activity (SGA) by reason of any medically determinable physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.”
The definition of disability for children under the age of 18 is slightly different but is defined as “a medically determinable physical or mental impairment or combination of impairments that causes marked and severe functional limitations, and that can be expected to cause death or that has lasted or can be expected to last for a continuous period of not less than 12 months.”
Understanding SSDI and SSI
Both SSDI and SSI are federal programs administered by the Social Security Administration (SSA) and designed to provide financial assistance to individuals with disabilities. However, they differ significantly in terms of eligibility requirements, funding sources, and benefit structures.
Social Security Disability Insurance (SSDI)
SSDI is an insurance program that offers benefits to individuals who have accumulated sufficient work credits through their employment history. Funded by payroll taxes under the Federal Insurance Contributions Act (FICA), SSDI is available to those who have contributed to the Social Security trust fund and have become disabled. Key aspects of SSDI include:
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Eligibility: To qualify, applicants must have a qualifying disability and have earned enough work credits, typically requiring approximately five years of work within the last ten years.
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Benefit Amount: The monthly benefit is calculated based on the individual’s average lifetime earnings covered by Social Security. Higher lifetime earnings result in higher benefit amounts.Social Security
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Health Insurance: Beneficiaries become eligible for Medicare after a 24-month waiting period from the onset of SSDI benefits.
Supplemental Security Income (SSI)
SSI is a needs-based program providing financial assistance to individuals who are aged (65 or older), blind, or disabled and have limited income and resources. Unlike SSDI, SSI is funded by general tax revenues and does not require a work history. Key aspects of SSI include:
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Eligibility: Applicants must meet the SSA’s disability criteria and demonstrate limited income and resources. The resource limits are $2,000 for individuals and $3,000 for couples. Social Security
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Benefit Amount: The federal benefit rate (FBR) sets the maximum monthly payment, which may be supplemented by state programs. In 2025, the FBR is $967 for individuals and $1,450 for couples. Social Security
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Health Insurance: Recipients typically qualify for Medicaid upon approval, providing access to essential medical services.
Who is Eligible for SSI?
To meet the income and resource requirements for SSI, Social Security has to determine you fall under their qualifying guidelines.
In general, anyone who is:
- aged (age 65 or older);
- blind; or
- disabled.
And, who:
- has limited income and resources
may be eligible for the program.
(There are several other qualifying guidelines you can learn about in detail here.)
When Social Security evaluates a SSI claim for “limited income” and “limited resources” they look at the money you earn from work. They will also look at the money you receive from other sources. Some sources may be: Social Security benefits, unemployment benefits, workers’ compensation benefits, the Department of Veteran Affairs, friends and family, free food or shelter.
In general, the income limit for SSI is the federal benefit rate (FBR). In 2025, the FBR is $967 per month for an individual and $1,450 per month for a couple. Not all income is countable. It’s important to work with a qualified disability lawyer to hash out the details.
The Social Security Administration reviews resources such as cash, bank accounts, stocks, U.S. saving bonds, land, vehicles, personal property and life insurance.
Social Security evaluates all of the above on a household basis. This means they will look at your spouse’s income and resources too.
2025 SSI resource limits are $3,000 for a couple and $2,000 for an individual or a child. But, Social Security excludes your primary residence and one vehicle used for transportation.
Key Differences Between SSDI and SSI
Understanding the distinctions between these programs is vital for applicants:
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Funding Sources: SSDI is funded through payroll taxes, while SSI is financed by general tax revenues.
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Work History Requirement: SSDI requires sufficient work credits; SSI does not consider work history but focuses on financial need.
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Benefit Calculation: SSDI benefits are based on prior earnings; SSI benefits are determined by federal and state regulations regarding income and resources.
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Health Coverage: SSDI beneficiaries are eligible for Medicare after 24 months; SSI recipients typically receive Medicaid immediately.
Concurrent Benefits: Receiving Both SSDI and SSI
In certain situations, individuals may qualify for both SSDI and SSI benefits concurrently. This typically occurs when an individual receives a low SSDI benefit due to limited work history or low earnings, allowing them to meet the financial criteria for SSI. Applying for both programs can increase the total monthly benefit and provide access to both Medicare and Medicaid. The SSA evaluates concurrent eligibility during the application process.
Application Process for SSDI and SSI
Applying for disability benefits involves several steps:
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Preparation: Gather necessary documentation, including medical records, work history, and financial information.
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Application Submission: Applications can be submitted online, by phone, or in person at a local SSA office.
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Review Process: The SSA reviews applications to determine eligibility, which may involve medical evaluations and assessments of work capacity.
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Decision and Appeals: Applicants receive a decision letter. If denied, they have the right to appeal through a structured process.
Given the complexity of the application process, consulting with a disability attorney can prove beneficial to claimants when navigating the system.
When You Should Apply for Both Programs
You should consider applying for both programs if your SSDI benefits are so low that they do not prevent you from meeting the financial eligibility requirements for SSI. With a successful application, the additional SSI benefits can bring your monthly checks up to the SSI maximum.
Government data for 2016 showed that 10% of claimants who received disability benefits received concurrent benefits. 62% received only SSDI. It’s also important to remember that the SSDI application process can take a very long time, sometimes years. You may not qualify for SSI initially. However, it is possible to qualify while waiting to be approved for SSDI if your assets and income fall below SSI limits. Then you can apply for SSI.
In conclusion, it can be challenging to qualify for and understand both SSI and SSDI. For that reason, we recommend that potential claimants work with a qualified disability lawyer.
Conclusion
Understanding SSD vs SSI is essential for individuals seeking disability benefits. While both programs aim to support those unable to work due to disability, they have distinct eligibility criteria, funding sources, and benefit structures. Assessing your personal circumstances, including work history and financial situation, will guide you in determining the appropriate program to apply for. In some cases, applying for both may maximize your benefits and access to healthcare services. Staying informed and seeking professional assistance can enhance your ability to navigate the application process successfully. Contact us today if you’d like guidance and a free consultation on your disability claim.
