Social Security has two different benefit programs for individuals who are disabled.

• Disability Insurance Benefits (DIB, also known as SSDI, or Title 2 benefits); and
• Supplemental Security Income (SSI or Title 16 benefits).

Because of its name, it is a common misconception that must apply for “Disability Insurance” if you are disabled. Actually, both programs provide disability benefits.  

What is Disability Insurance Benefits (DIB)?

Generally, Disability Insurance Benefits are based on your payroll contribution to Social Security.  To qualify for DIB, you have to have earned enough Social Security credits, in the right time frame, by paying into Social Security through payroll taxes.  

There are several circumstances in which you may not have enough credits for Social Security Disability Insurance:

• If you have never worked.
• You worked so long ago that you are past your date last insured.  
• Instead of paying into Social Security, you paid into a state program (such as PERA). 

In each of these cases, you might not be eligible for Disability Insurance (DIB).
Please note that this is just an overview.  There are several circumstances in which you may still be eligible for Social Security Disability Insurance (DIB) even if you do not have not have enough credits under your own earnings, including:  

• Social Security Disability Insurance (DIB) based on a spouse’s, or former spouse’s, earnings.
• Widow/er’s benefits and Children’s benefits when a spouse/parent dies.
• DAC (Disabled Adult Child) benefits.

It is often a good idea to speak with Social Security if you think you may qualify for one of these other types of Social Security Disability Insurance Benefits (DIB).

What is Supplemental Security Income (SSI)?

Even if you are not eligible for DIB, you may still be able to apply for SSI.  

Supplemental Security Income is a Social Security program which provides disability benefits to the following groups:

• Children, 
• Adults who have never worked; and 
• Adults who do not have enough quarters of coverage, or are past their date last insured.

Between a Rock and Hard Place:

Is it possible to not be eligible for either Disability Insurance Benefits (DIB) or Supplemental Security Income (SSI)?

Sadly, yes.

If you cannot prove your disability prior to your date last insured, and your spouse makes too much money (or you have another problematic source of income), it is possible that you may not qualify for either DIB or SSI.  This is the proverbial between a rock and a hard place.

Which Program Should I Apply For?

In my opinion, apply for both.  Do not rule out your eligibility for a particular Social Security program. When you apply, Social Security will determine which benefit program(s) you are eligible for and will help you file the application. However, if you want to know if you will qualify for either program, Social Security has a website where you can see what benefits you may be eligible for.

But, Wait!  There’s More.

Once again, this is just a quick overview of DIB and SSI.  There are differences between Social Security Disability Insurance (DIB) and Supplemental Security Income (SSI) which I will address in other articles.

I enjoy reading attorney Paul Nidich’s blog Nidich on Anything. Paul’s knowledge nicely dovetails with my own. When there is an area I am uncertain about, I check to see what Paul has written.

A while ago, Paul wrote a nice article about Disabled Adult Child (DAC) benefits.

I did a search for “Disabled Adult Child” last night. On one of the web sites, the “expert” writing about the DAC benefit had the “disabled before age ___” incorrect. In speaking about special needs trusts and attending other’s presentations on special needs trusts, I find that few lawyers are aware of the DAC benefit, and, of course, fewer people in the disability community are aware of the benefit.

Disabled Adult Child is a Social Security program for adults who became disabled before the age of 22. The main benefit of this benefit program is that is allows the adult child to receive benefits based on the parent’s earnings record, which may mean more benefits than the child would otherwise be entitled to.

DAC benefits may also be a better option than Supplemental Security Income (SSI) benefits.

Under SSI, a spouse’s income, an inheritance, or a law suit settlement may make the individual ineligible for benefits and force Social Security to suspend or terminate benefits.

However, under DAC, these sources of (non-employment) income are not considered.

How do you qualify for DAC?

Here is what Social Security says:

An adult disabled before age 22 may be eligible for child’s benefits if a parent is deceased or starts receiving retirement or disability benefits. We consider this a “child’s” benefit because it is paid on a parent’s Social Security earnings record.

We make the disability decision using the disability rules for adults.

The “adult child”-including an adopted child, or, in some cases, a stepchild, grandchild, or step grandchild-must be

• unmarried,
• age 18 or older, and
• have a disability that started before age 22.

Click here for more information Social Security about DAC benefits. Read the rest of Paul’s article here.

Update: unfortunately Paul has taken down his site, so I have removed the links.