Social Security Disability vs. SSI Benefits

Most claimants applying for Social Security benefits apply for one of two programs - Disability or Supplemental Security Income(SSI).

Disability Benefits

Disability benefits are generally available to people who have worked in the past and are disabled. Remember when you received your paycheck and saw a tax for FICA? That tax was for Social Security benefits, and part of that tax went to pay for disability benefits in case you become disabled. So, Disability benefits are not "welfare." Instead, this is an insurance program that working individuals purchase when they are working.

Supplemental Security Income

On the other hand, SSI (Supplemental Security Income) benefits are for people who have little income, few resources and are disabled. For SSI, it doesn't matter if the claimant has worked in the past or not. Instead, you have to show that you have little income and few resources to qualify. Your spouses income counts, as opposed to Disability benefits where it doesn't matter if your spouse has income or not.

Therefore, some people qualify for both programs, some for neither, and some for one or the other. Here are some examples:

Examples of Eligibility

Example 1: 34 year old female with severe breathing problems worked for several years up until two years ago. She has little income and few resources AND has enough work credits for Disability purposes. If she proves that she is disabled, she may qualify for both programs.

Example 2: 34 year old female with severe breathing problems has never worked and her husband makes $50,000 per year. This person probably doesn't have the work credits for disability, and her husband makes too much for SSI purposes. She probably doesn't qualify for either program.

Example 3: 34 year old female with severe breathing problems has never worked and she is unmarried and staying with family until she can receive benefits. She has no income and no resources. She can probably qualify for SSI but not Disability. For SSI purposes, SSA looks at "countable" and "non-countable" resources -- more on this later.

Example 4: 34 year old female with severe breathing problems has generally worked in the past and has $30,000 in savings. This person may qualify for disability if she has the proper work credits in the right time period but not SSI since she has too much in resources.

For Disability benefits, it doesn't matter what resources the person has. They can live in a million dollar home, have savings, retirement, rent houses, etc. It only matters that the claimant has the proper number of work credits in the proper time period.