Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are two different federal programs administered by the Social Security Administration. SSDI is a tax-funded insurance program for disabled or blind individuals who have contributed to the Social Security Trust Fund, while SSI is a need-based income support program for the blind, disabled, and elderly with little or no income. Eligibility for both programs requires physical or mental disability and inability to work for at least one year. SSDI benefits are based on an individual’s employment history, while SSI benefits are based on financial need.
Although many people use the terms Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) interchangeably, the two are actually different federal programs. SSDI is a tax-funded insurance program on an individual’s payroll. SSI, on the other hand, is a need-based income support program funded by general tax revenue. However, both programs are administered by the Social Security Administration (SSA), and for both SSDI and SSI programs, a worker must be determined to be physically or mentally disabled and unable to work for at least one year.
The SSDI program provides benefits to disabled or blind individuals who are considered “insured” because of their contributions to the Social Security Trust Fund. These contributions are the Federal Insurance Contributions Act (FICA) Social Security tax paid on workers’ earnings.
According to the Social Security Administration, a person qualifies for SSDI, also called Social Security Disability Insurance or SSD, if they have a physical or mental condition that prevents them from working for at least twelve months or that results in their death. Eligible applicants must also be under 65 and have worked at least five of the last ten years. Disabled people who qualify should receive SSDI until their condition improves. If their conditions don’t improve, SSDI wants to be a guaranteed source of income for them.
The Supplemental Security Income program is a cash assistance program that is based on an individual’s financial needs, not an individual’s employment history. The SSI is funded by the General Fiscal Funds of the US Treasury. The SSI program was established to help the blind, disabled, and elderly with little or no income by providing them with a monthly allowance to pay for food, clothing, and shelter.
In order to receive SSI benefits, an individual must be physically or mentally disabled, blind, or be at least 65 years of age. A suitable candidate must also have limited resources and income. Children who are blind or disabled can also receive SSI funds.
People who receive SSI are usually also eligible for monthly food stamps and Medicaid, which helps pay for doctor appointments and hospital bills. The amount of SSI an individual can receive depends on where the person lives, what they own, and the amount of monthly income the person earns. Therefore, SSI benefits are more limited than SSDI benefits.
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