With President Franklin D. Roosevelt’s New Deal came many new agencies, often called “alphabet agencies.” FCC, FAA and SEC are programs we’re all familiar with today.
However, it can become confusing, especially when you’re talking about SSI and SSDI, which the SSA oversees. But knowing the difference is essential, especially if you need to apply for benefits.
Your work history
Social Security Disability Insurance (SSDI) is an insurance program funded by payroll taxes that provides benefits to people with a qualifying disability. In addition to being disabled, you also need to have enough work credits, which are earned through your employment. Your average lifetime savings determine your payment. Therefore, older people who have been in the workforce longer will likely receive a higher payment than their younger counterparts.
Individuals on SSDI also get access to Medicare, the federal health insurance program, after a 24-month waiting period.
Supplemental Security Income (SSI) is a federal assistance program for people who have limited income and resources. To be eligible for SSI, a person needs to be:
- 65 or older, or
- Blind, or
- Disabled regardless of their age or work history, meaning that SSI is available to children who are blind or disabled.
To qualify for SSI, your countable assets must be less than $2,000 ($3,000 for couples). Countable assets refer to cash or anything that can be easily converted, such as:
- Bank accounts
- Stocks and bonds
- Land
- Vehicles
- Life insurance policies with a face value greater than $1,500
Certain assets, such as the home you live in, the land it’s on and one vehicle for the household, are exempt. In addition, SSI recipients have access to Medicaid, Indiana’s program to help cover medical costs.
Both SSI and SSDI are overseen by the Social Security Administration (SSA) and provide financial assistance to people with disabilities, but they each have different requirements. Understanding the differences can help ensure you are applying to the right program for your situation.