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.

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.

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.

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.