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