Social Security Disability and Supplemental Security Income
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On average, if an employee who is now disabled worked for at least five out of the last ten years, that employee would usually be qualified for SSDI benefits. Those benefits were paid for by the employee out of wage withholdings and act as a disability insurance policy. The employee would have to qualify under the Social Security regulations and guidelines, be unable to perform substantial, gainful activity and be under 65 years of age.
The main advantage to SSDI is that the benefit is usually significantly more than SSI benefits and is not dependent on the assets of the worker. The worker is entitled based on the fact that the worker had paid for the SSDI insurance benefits and it does not matter if the worker has money in the bank, a pension plan, etc.
SSI, on the other hand, or Supplemental Security Income, is like a welfare program intended to assist disabled individuals who have not qualified for SSDI benefits because they did not work for five out of the last ten years.
To qualify, in addition to being disabled, blind, or over 65 years old, this asset and income-based plan requires that the claimant have less than $2,000 in total assets or $3,000 per couple. No prior work requirement exists to qualify for SSI, since most applicants will either never have worked because of disability or earned too little income to receive “work credits” under Social Security regulations.
The SSI program, while administered by the SSA, draws its funds not from FICA payroll revenues, since beneficiaries of SSI haven’t contributed to the Social Security Trust Fund, but from general tax revenues reserved for social welfare programs.
Certain necessities may be exempted from inclusion in the “limited assets” requirement for SSI. For instance, the first $65 of monthly income from work and half of the total amount over $65 don’t figure into the “limited income” tally. One’s life insurance benefits, housing, and automobile are excluded from the SSI determination of “limited resources” as well.
As of 2013, all qualified applicants for SSI benefits generally receive the same monthly payment of $710 for an individual and $1,066 per couple. Some states supplement this base monthly payment with subsidies of their own, and all recipients of SSI qualify for Medicaid.
As mentioned above, SSDI offers a larger payout to its beneficiaries than the SSI program. The disbursement is higher because successful claimants for SSDI obtain benefits in proportion to earnings and duration of employment.
Actually obtaining SSDI benefits, however, can involve significant challenges and delays. It has been estimated that 67% of initial claims get denied. Petitioners for insurance often wait several years for a favorable resolution to their case. Experienced counsel at Normand and Associates can help you navigate the complex procedural detail of SSDI claims resolution to secure the best possible outcome for you and your family.
Articles contained here are not intended to provide legal advice, only providing general information. We encourage individuals to consult with an attorney regarding individual circumstances.
