Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) are easily confusing as they have overlapping missions and almost similar initials. However, their operations, funding sources, qualification requirements, and benefits awarded to members vary. Here is a detailed explanation of the differences between SSI and SSDI:

Who Qualifies

You can qualify for SSDI if you have a mental or physical impairment severe enough to impact your ability to engage in your usual occupation. This disability should last for more than one year or a lifetime.
The SSI requires you to have a disability that lasts more than 12 months, be blind, or be 65 years or older to be eligible for benefits. You must have minimal assets and income to qualify for this program.

How to Qualify

A working history and payment of social security taxes are required to apply for SSDI. How long you should have worked to qualify for this program varies depending on age. If you have been disabled on your parents’ record since childhood, you could also be eligible for SSDI.

Unlike SSDI, SSI is based on your financial resources and income rather than your work history. You can receive SSI without having worked a day in your life. However, your finances, including property and bank accounts, should not exceed strict caps. The resource limit to be eligible for SSI for one person is 2000 dollars, and that of a couple is 3000 dollars.

Not all assets and income count against the SSI caps. For instance, Social Security does not include your home’s value and half of your earnings from work when calculating your financial resources.

Financing and Administration

The SSDI started in 1956, after the amendment of the social security rule barring disabled workers from benefit payments. The employer and the disabled individual bear the cost of this program through payroll taxes. All the benefits are paid out from the Social Security Disability Insurance Trust Fund. The amounts you receive from SSDI are based on your earning history; the longer you’ve worked, the more benefits you have.

The SSI was established in 1977 to replace different programs that offered benefits to the elderly and disabled. It is managed by the Social Security Administration but is not financed by social security taxes. The program is paid for from general revenues from the Treasury Department. Most states also provide supplemental benefits to recipients of SSI on top of the federal amounts.

Medicaid Membership and Other Benefits

If you are disabled and eligible for SSI under the income requirement, you automatically qualify for Medicaid in your state. Being an SSI recipient also qualifies you for other benefits, such as food stamps. Your benefits are dependent on where you live and your regular monthly income. All these benefits begin after the first month of submitting your application.

Qualifying for SSDI does not automatically prove your eligibility for Medicare. You only qualify for Medicare after receiving SSDI for two years. Unlike the SSI, the SSDI does not guarantee other benefits, such as food stamps.

Apply for SSI or SSDI

If you cannot work due to mental or physical reasons, you may be eligible for social security disability payments. The SSI and SSDI are social security programs that aim to improve your living standards if you have a disability or are over 65 years.

To be considered disabled, you must prove a disability that has lasted or is expected to last more than 12 months. SSDI eligibility is based on a working history, while SSI is based on low financial resources. Suppose you have limited income and work history; you can qualify for both. Apply online or visit any Social Security office near you.