Difference Between SSI and SSDI


Because not a lot of people really have a good understanding about the difference between SSI and SSDI, it is common to hear people using the terms interchangeably. To avoid misunderstanding, it is best to know and understand everything about these federal programs in the country.

SSI or Supplementary Security Income is a program of the United States government. It provides assistance to the low income population in the country. There is an emphasis on the need to provide for people who are aged 65 years and older as well as for those individuals who are suffering from medical and psychological problems. The program is handled by the Social Security Administration. The program was initially created to take the place of certain assistance programs handled by the state and federal governments. SSI benefits cannot be easily enjoyed. An individual has to be assessed and must prove to have the set of requirements determined for the participants of the program. An important aspect of the program is the cap on the value of the individual’s resources. Singles should not get beyond the $2,000 cap while married individuals should not have anything more than $3,000.

SSDI, or Social Security Disability Insurance, is the insurance program of the American government funded by the federal law. SSDI is handled by the Social Security Administration and is initially designed to help individuals who are not able to find work and support themselves because of some disabilities. The program can help these individuals until such time when their condition is well enough to allow them to provide for their own needs. Eligibility to the SSDI program requires a physical or mental condition that limits the person’s ability to be involved in substantial gainful activity. The condition is something that should be around for more than 12 months. The age limit is 65 years old, and the applicants should have worked before the disability started to prevent them from doing so.

Both the SSI and SSDI are federal programs, but they are of totally different entities. The difference between SSI and SSDI goes beyond mere funding. While SSI is a program designed to supplement the needs of individuals with the help of finances coming from the federal government’s tax revenues. SSDI, on the other hand, is a federal insurance program whose funding comes from the person’s payroll taxes paid while the individual has still been working.

In Brief:

SSI is the Supplementary Security Income is to assist the low income population

SSDI, or Social Security Disability Insurance is a federal insurance program to assist disabled who are unable work and support themselves.

People aged 65 years and older or individuals under 65 with medical and psychological problems are eligible for SSI.

People who discontinued from work due to mental condition that sustains for more than 12 months and are under 65 years are eligible for SSDI.

The eligibility criteria for SSI is very strict, individuals are assessed on a set criteria for eligibility to entail for this program. One criterion is the maximum cap value, $2000 for singles and $3000 for married individuals.

SSI is supported by finances coming from the federal government’s tax revenues.

SSDI is supported by the fund coming from the person’s payroll taxes paid during employment.

Because of the difference between the words SSI and SSDI is not really much, it is understandable to see people getting all confused about these two programs. Understanding the essence of each program and determining the benefits one can avail under these programs are the best way to start the process of utilizing what the programs can offer.