If you are like most people, you probably have never had to think about what you would do if you became disabled. What would you do if you suddenly could not work? How would you pay your rent or mortgage? How would you afford to see your doctor?

Social Security provides help if you ever find yourself in this situation.

Generally, Social Security disability benefits provide two things:

1. Monthly cash benefits – to help you pay for your expenses.
2. Health insurance (Medicare or Medicaid) – to help you pay for your medical expenses.

Social Security has two similar disability programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Even though only SSDI has the word, “disability” in its title, both programs provide benefits if you become disabled.

• Both SSDI and SSI provide monthly cash benefits. SSI benefits are limited to the Federal Benefit Rate ($674 per month for 2010), while SSDI can be higher and is based on the amount of your contribution to Social Security through payroll taxes. If you are curious about how much you might be entitled to if you became disabled, Social Security provides online calculators to help you estimate your benefits.
• Both SSDI and SSI provide health insurance. SSDI recipients are eligible to receive Medicare while SSI recipients can receive Medicaid.

Keep in mind that there are differences between SSI and SSDI, and we have not touched on SSI’s financial eligibility requirements, or how Social Security evaluates cases. However, if your are considering applying for benefits this is a very quick overview of what you can get from Social Security if you are disabled.

A quickie article answering a common question: can you garnish Social Security disability benefits for child support?

Title 2 Disability Insurance (aka SSDI or DIB) benefits can be garnished for child support.

However, Title 16 Supplemental Security Income (aka SSI) benefits cannot be garnished. 

This is general information only and not legal advice. Contact a lawyer for advice on your specific circumstances.

I was recently asked which pays more in benefits? Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI)?

If you are wondering about the difference between SSDI and SSI, read this post.

As for which pays more, the answer is “it depends.”  

SSI benefits are based on the annual Federal Benefit Rate (FBR) which sets the maximum SSI benefits you can per month. For 2009, the FBR is $674 for individuals ($1,011 for couples).  That mean the most an individual on SSI can receive is $674 per month. Couples who are both on SSI can receive a maximum of $1,011 per month.  

Disability Insurance (SSDI) benefits are based on your payroll contribution to Social Security. The more you have paid into Social Security, the more monthly benefits you may be entitled to.  

Simply put, SSI is capped at $674 per month (based on the 2009 SSI Federal Benefit Rate). Depending on how much you have paid into Social Security, SSDI may pay more in benefits. 

If you want to get an idea of how much you may be entitled if you become disabled, Social Security has online benefit calculators which can estimate benefits amounts.  Social Security also mails you a “Social Security Statement” every year before your birthday which describes your estimated benefits.

SSDI and SSI provide different medical benefits:

• Supplemental Security Income provides Medicaid benefits which can pay for treatment, specialists and surgeries.
• Social Security disability insurance provides Medicare benefits, including Medicare Part D, which pays for prescription drugs.

If you get both SSDI and SSI, you may be able to get both Medicare and Medicaid.

Getting both SSDI and SSI is also helpful in mitigating the 5 month waiting period in SSDI cases. While you may not be able to get your Disability Insurance during the first 5 months, you may still be able to get SSI benefits during that time.

Keep in mind that this requires the alleged onset date to be the same as the protected filing date because of the limits on back benefits in SSI cases.

I recently wrote about the difference between Social Security disability insurance (SSDI) and Supplemental Security Income (SSI).

But, can you get both: SSI and SSDI?

Depending on your circumstances, yes.

The maximum you can receive on SSI is based on the annual Federal Benefit Rate (FBR).  For 2012, the FBR is $698.  That mean the most you can receive on SSI in $698 per month.

Disability Insurance Benefits are based on your payroll contribution to Social Security.  The more you have paid into Social Security, the more in monthly benefits you may be entitled to.

The only way to get both SSDI and SSI is for your SSDI benefits to be less than the Federal Benefit Rate (FBR). 

If that happens, and you qualify financially for SSI, you can also get Supplemental Security Income to pay up to the Federal Benefit rate.

I realize this may sound like a bunch of legalistic gobbledygook. So, here is a quick example:

Let’s say you only qualify for $500 per month in Social Security disability insurance benefits.

SSI may pay you an additional $198 to bring your total monthly benefits up to the Federal Benefit rate.

However, if you get $700 from SSDI, you will probably get nothing from SSI, because you already are receiving more than the $698 Federal Benefit Rate in SSDI.

We previously discussed Social Security’s Disability Insurance Benefit (DIB) and Supplemental Security Income (SSI) programs.

The big difference between DIB and SSI is type of income which affects eligibility. 

Under the “Disability Insurance” Program, Social Security considers whether you are working and earning money (engaging in a Substantial Gainful Activity – SGA). If you earn too much money as income, you may be denied Social Security DIB benefits.  Of course, there are some exceptions.

In other words, if you are applying for Disability Insurance Benefits, your earnings, if any, may make you ineligible.  But, other sources of money: gifts, prizes, winnings, settlements, and even spouses income, are NOT counted in determining eligibility.

Under Supplemental Security Income, all income: your earnings, your spouse’s earnings, gifts, settlements, and in children’s cases: household income, can make you financially ineligible to receive SSI.  SSI is a ”needs based” program and a program of last resort, if you have another source of income, then your “needs” are viewed as decreased.

In addition to income, SSI also considers your assets in determining eligibility. The plot of land you own, those shares of stock you received, most any assets you have may make you ineligible for SSI.

HOWEVER, the income and asset rules are so complicated and have so many exceptions that you do not want to jump to conclusions about whether or not you may be eligible.  This is something you will want to go over with Social Security.

Is there a difference between Disability Insurance (DIB) and Supplemental Security Income (SSI) benefit amounts?

Yes. The maximum you can receive on SSI is based on the annual Federal Benefit Rate (FBR).  For 2009, the FBR is $674.  That mean the most you can receive on SSI in $674 per month.  

Generally, Disability Insurance Benefits are based on your payroll contribution to Social Security.  The more you have paid into Social Security, the more in monthly benefits you may be entitled to.  

If you want to get an idea of how much you may be entitled if you become disabled, Social Security has online benefit calculators which can estimate benefits amounts.  Social Security also mails you a “Social Security Statement” every year before your birthday which describes your estimated benefits.

We have talked a lot about how far back can you get Social Security benefits. 

I want to make sure there is no confusion: Social Security does NOT limit you to only 12 months of back benefits.

There is a limit in how far BEFORE your protected filing date (PFD) you can get benefits (12 months in a Social Security Title 2 Disability Insurance claim — SSDI or DIB).

However, this is only part of the total amount of back benefits most people are entitled to.

If Social Security approved your claim as soon as you applied, then you might be limited to 12 months of back benefits (because you won as soon as you filed).

In most cases though, it takes months or years to win your case. Potentially, you are eligible to get benefits for the entire time you are kept waiting AND up to 12 months before you filed for benefits.  

Of course, Social Security requires that you prove that you were disabled that entire time.

If you are disabled, how far back will Social Security pay benefits? Back to when the disability began?

It depends on whether you are applying for Social Security Disability Insurance (SSDI or DIB), or Supplemental Security Income (SSI).

Social Security Supplemental Security Income (SSI) pays benefits back to the “Protected Filing Date (PFD),” the date you contacted Social Security and asked to apply for benefits.

Social Security Disability Insurance, on the other hand, pays benefits up to 12 months before the Protected Filing Date.  However, you should also keep in mind the “5 month waiting period.”

Note: these are maximum back benefit payments. Social Security has to find you disabled back to the PFD (for SSI) or 12 months before the PFD (for SSDI) to get those back benefits.

If you apply for Social Security Disability Insurance benefits (SSDI or DIB), you may be surprised that Social Security keeps the first 5 months of back benefits.

This is referred to as the “5 month waiting period.”

If you awarded benefits back to January 1st, Social Security actually keeps the benefits for January, February, March… all the way through May.  Your disability insurance benefits will start in June.  

What?!?!  But, it is my money!

I know! But, that is how the system works!

However, there is an exception to the 5 month waiting period.

Bear with me while I go over some basics:  Disability Insurance benefits can only be paid 12 months prior to the Protected Filing Date (PFD). 

If your PFD is January 2009, at most you can get benefits back to January 2008. If your Alleged Onset Date (AOD) is January 2008, Social Security applies the 5 month waiting period (keeping your benefits for January through May) and your benefits begin to paid as of June 2008.  

Here is the exception to the 5 month waiting period: if your Alleged Onset Date (AOD) is 5 months or more BEFORE the 12 month maximum back payment period, you do not lose 5 months of benefits?

What? Go over that part again.

Let me put it another way. If your Alleged Onset Date is 17 (or more) months before the protected filing date (PFD), you are eligible to get the maximum 12 months of back benefits prior to Protected Filing Date.

Just keep in mind that you cannot just pick a date 17 months before you applied as your Alleged Onset Date (AOD) and leave it at that.  You have to prove you were disabled back to the Alleged Onset Date. The further back you have prove your disability, the more difficult your case becomes.

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.

Social Security a bit like car insurance:  you pay your premiums to obtain insurance covered.  

When it comes to Social Security, your premiums are your payroll taxes and the coverage is disability insurance.  

In order to qualify for Social Security Disability Insurance, you have to have paid enough into the Social Security system through payroll taxes.  Once you have worked long enough, you become insured for Disability Insurance benefits should you become unable to work.

What happens when you stop paying your premiums?

Just like for car insurance, you may be covered for some time after your last payment, but there will be a cut off date for your policy.  If you have an accident before your cut off date, the insurance company will take care of you.  However, if you have an accident after your policy lapses, the insurance company wont give you anything.  

So, how does this apply to Social Security?

If you have stopped working (or have started a job that does not pay into Social Security — one example in Colorado is teachers, who pay into PERA instead), you stop paying the “insurance premium.”  That means that sooner or later you will reach your date last insured.  The last date you are insured for Disability Insurance benefits under Social Security.  

Here is where things get a little tricky:

• The date last insured does not limit when you can file for benefits.  You can still file for Disability Insurance benefits after your date last insured.  Note: there are some exceptions to this which go beyond the scope of this article.
• The date last insured limits when you must prove your disability began.  Just as in a car accident case where you have to prove that the accident happened while you were still insured, in a Social Security case, you have to prove that the disability occurred before the date last insured.  
• If you can prove that your disability began before your DLI, you may be able to receive Disability Insurance benefits (even if you file for benefits after the DLI).  If you cannot prove the disability began before the DLI, you might not be eligible for Disability Insurance.

Here is another important thing to keep in mind:

Date last insured only applies in Disability Insurance cases.  Date last insured is not an issue in the “other” kind of Social Security disability benefits:  Supplemental Security Income (SSI cases).  While date last insured may make you be ineligible for Disability Insurance Benefits, you may still qualify for Supplemental Security Income benefits (SSI).  

 photo credit: wrhowell

According to Social Security, 6.9 million disabled workers received disability benefits from Social Security in 2007. Another 1.8 million individuals received benefits as dependents of disabled workers.

This is compared to 31 million receiving retirement benefits.

The average monthly disability benefits was $979. Although it should be noted, for those receiving Supplemental Security Income benefits, the maximum amount a SSI recipient could receive in 2007 was $637.

Total payout to disabled workers and dependents in 2007 was 7.2 billion dollars. However, this is only 17% of total benefits paid by Social Security.

Just some quick facts.