Plane Benefits: Understanding and Choosing the Right Program
It can be challenging to live with a disability, mainly if it keeps you from working and generating a reliable income. Fortunately, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are two financial aid programs the U.S. government offers to those with disabilities. Both programs aim to assist those in need, but there are differences in the application, eligibility, and benefits processes.
The Basics of SSI and SSDI
Before diving into the differences, let’s establish a foundation by explaining each program.
A needs-based program called Supplemental Security Income (SSI) offers financial assistance to those who are blind or disabled, 65 years of age or older, and have low incomes and resources. SSI, which is paid for by general tax resources, assists recipients in meeting necessities including clothing, food, and housing.
The Social Security Disability Insurance (SSDI) program, on the other hand, provides payments to those who have paid Social Security taxes and worked for a sufficient amount of time, but are now unable to work because of a disability. Payroll taxes are used to fund SSDI, and recipients get payments based on their average lifetime wages prior to the beginning of disability.
The Main Difference Between SSDI and SSI
Now that we have a basic understanding of SSI and SSDI let’s explore the main differences between the two programs.
Eligibility Criteria
Your employment history and the amount of Social Security taxes you have paid over time determine your eligibility for SSDI. You must have worked recently and had sufficient time to accrue enough labor credits to be eligible. The amount of work credits needed varies based on your age at the time of disability.
Financial need and disability status determine a person’s eligibility for SSI benefits. You must be blind or disabled, 65 years or older, and have low resources and income to be eligible. For SSI, no job history is necessary.
Income and Resource Limits
SSI has strict income and resource limits. Income includes wages, Social Security benefits, pensions, and other sources. Resources include cash, bank accounts, stocks, bonds, and property (excluding your primary residence).
SSDI does not have income limits but does consider your ability to engage in substantial gainful activity (SGA).
Funding Sources
SSDI is funded through payroll taxes. As you work and pay Social Security taxes, you earn work credits that count towards your SSDI eligibility.
SSI is funded by general tax revenues, not Social Security taxes. This means that SSI benefits are not tied to your work history or the amount of Social Security taxes you’ve paid.
How Much Do Benefits Pay Out?
The benefits you receive from SSI or SSDI can vary significantly depending on your situation.
Your average lifetime earnings before the onset of your impairment are the basis for SSDI benefits. Your benefits are determined by the Social Security Administration using a complicated formula that considers your age, prior wages, and number of years worked.
The government-set federal benefit rate (FBR), which is yearly modified for increases in the cost of living, serves as the foundation for SSI compensation. Benefits from SSDI and SSI may be taxable based on your filing status and total income.
When would your benefits start
The timeline for receiving SSI or SSDI benefits can also differ.
If approved for SSDI, your benefits will start after a five-month waiting period from when your disability began. For instance, if your disability began on January 1st and you were approved for SSDI, your first payment would be in June. SSDI benefits are paid in the month following the month they are due so that you would receive your June payment in July.
For SSI, benefits generally start on the first of the month after you submit your application if you’re found eligible. For example, if you apply for SSI on April 15th and are approved, your benefits will begin on May 1st. SSI benefits are paid on the first of each month.
Choosing SSI or SSDI for Your Situation
Deciding between SSI and SSDI can be challenging, as the best program depends on your unique circumstances. Here are some factors to consider:
Work History: If you have a sufficient work history and have paid Social Security taxes, SSDI may be the better option. SSI might be more appropriate if you have limited or no work history.
Income and Resources: If you have limited income and resources and meet the SSI eligibility criteria, SSI may be the right choice. If your income and resources exceed the SSI limits but you have a strong work history, SSDI might be a better fit.
Benefit Amount: Consider your potential benefit amount under each program. SSDI benefits are typically higher than SSI benefits, but this can vary depending on your work history and income.
Eligibility for Other Benefits: In certain circumstances, receiving SSI may qualify you for Medicaid or other benefits. Medicare enrolment occurs automatically for SSDI recipients following a 24-month waiting period.
It is feasible to be eligible for SSDI and SSI simultaneously. If you qualify for both programs, your SSI benefits will be reduced by the amount of your SSDI payment, and you will get SSDI benefits first.
Contact Plan Benefits to Learn More About the Difference Between SSI and SSDI and Start Your Claim
Our knowledgeable and compassionate professionals have years of experience assisting individuals with disabilities in understanding their options and securing the benefits they deserve.
Refrain from letting your uncertainty regarding SSDI and SSI keep you from getting the money you require. To arrange a free consultation and discover more about how we can assist you in initiating your claim, get in touch with Plan Benefits right now. Our committed staff is available to respond to your inquiries, offer advice, and assist you at every stage of the procedure.
Getting the proper financial assistance requires knowing the distinctions between SSDI and SSI. Once you know your eligibility and each program’s advantages, you can make an informed choice. Contact Plan Benefits if you would like professional guidance and support in deciding which program is appropriate for your circumstances.
Additional Considerations
When choosing between SSDI and SSI, it’s crucial to consider any extra programs that can offer support. For instance, food expenses may be covered by the Supplemental Nutrition Assistance Program (SNAP). SNAP eligibility for SSI and SSDI beneficiaries varies based on household size and income.
While applying for SNAP, SSDI, and SSI might be difficult, getting help from a professional can help the process go more smoothly. Knowing how these programs differ from one another can have a significant impact on your quality of life and financial security. To ensure that you use the system efficiently and receive the help you require, contact Plan Benefits for comprehensive advice and support.
By understanding the distinctions and nuances of SSI and SSDI, you can better plan for your financial future. Whether you qualify for one or both programs, knowing your options will help you secure the benefits you’re entitled to. Reach out to Plan Benefits for comprehensive support and to start your claim today.
