As a Social Security disability advocate I frequently meet people who believe that they must be poor and have very limited assets to qualify for Social Security disability (SSDI) benefits. For example, a client recently told me that he could not qualify for Social Security disability because he had money in the bank and owned property. This is not true at all.
Well meaning people sometimes say, "That person is getting Social Security disability, and he's got more money than I have. Just look at the kind of truck he drives and the clothes he wears! Why, he's got a lot more than most people!" The truth is, however, that workers pay for Social Security disability insurance and they are not required to be poor in order to collect on the benefits they paid for all the years they worked. Just like you would not have to be poor to collect a claim on your homeowners insurance that you paid for for years before filing the claim! You would not need to be poor to collect on an automobile insurance policy that you paid premiums on for 20 years before your accident!
The misunderstanding probably comes from getting Social Security disability insurance (SSDI) mixed up with Supplemental Security Income (SSI), which are both administered by the US Social Security Administration but are totally different programs.
Let's take just a brief look at the 2 programs so we don't get them confused.
Social Security disability insurance, also called Title II (two), is purchased when a worker has FICA tax withheld from his payroll. The rate is 6.2 percent of earnings. The employer also matches this by paying an additional 6.2 percent into the SSDI program (for a total of 12.4 percent). A person must have worked and obtained a sufficient number of "quarters of coverage" to be insured under SSDI or Title II. (This also means that he/she must have paid a certain amount of taxes into the Social Security program to be covered).
If an insured person files a disability claim under Title II, he or she does not have to be poor, have a limited income or restricted assets in order to get benefits. There is no income or asset test for SSDI benefits. You can have a million dollars in the bank and money rolling out your ears and still legally get SSDI benefits because you purchased the disability insurance and paid for it with payroll deductions. (Let's be fair, here. The US Government requires you to buy disability insurance and pay FICA tax. You cannot opt out because it's the law). So, no income or asset limits here.
Supplemental Security Income (SSI) is also called "Title XVI" benefits. SSI is for poor individuals or families who have low income and limited resources or assets. It is designed for poverty level persons and families so they can afford the most basic necessities of living, such as food, clothing and shelter. The federal maximum benefit for an individual is $710 a month, more for families.
SSI (Title XVI) does restrict a claimant's income and assets in order to qualify. However, SSI does not require a work record to qualify.
In an SSDI (Title II) claim, the claimant's monthly benefit is based on how long he has worked and the amount of wages he has earned. However, in an SSI (Title XVI) claim, the monthly benefit is based on other income, such as a working spouse or other family member. Living arrangements may also affect benefits under SSI claims.
So please remember that Social Security disability insurance (SSDI) is not a form of welfare. You do not have to be poor or have limited income to get SSDI; you only have to be unable to work because of a physical or mental impairment that is expected to last for 12 consecutive months or longer, or to end in death.
What 2 things do SSDI and SSI have in common?
Well meaning people sometimes say, "That person is getting Social Security disability, and he's got more money than I have. Just look at the kind of truck he drives and the clothes he wears! Why, he's got a lot more than most people!" The truth is, however, that workers pay for Social Security disability insurance and they are not required to be poor in order to collect on the benefits they paid for all the years they worked. Just like you would not have to be poor to collect a claim on your homeowners insurance that you paid for for years before filing the claim! You would not need to be poor to collect on an automobile insurance policy that you paid premiums on for 20 years before your accident!
The misunderstanding probably comes from getting Social Security disability insurance (SSDI) mixed up with Supplemental Security Income (SSI), which are both administered by the US Social Security Administration but are totally different programs.
Let's take just a brief look at the 2 programs so we don't get them confused.
Social Security disability insurance, also called Title II (two), is purchased when a worker has FICA tax withheld from his payroll. The rate is 6.2 percent of earnings. The employer also matches this by paying an additional 6.2 percent into the SSDI program (for a total of 12.4 percent). A person must have worked and obtained a sufficient number of "quarters of coverage" to be insured under SSDI or Title II. (This also means that he/she must have paid a certain amount of taxes into the Social Security program to be covered).
If an insured person files a disability claim under Title II, he or she does not have to be poor, have a limited income or restricted assets in order to get benefits. There is no income or asset test for SSDI benefits. You can have a million dollars in the bank and money rolling out your ears and still legally get SSDI benefits because you purchased the disability insurance and paid for it with payroll deductions. (Let's be fair, here. The US Government requires you to buy disability insurance and pay FICA tax. You cannot opt out because it's the law). So, no income or asset limits here.
Supplemental Security Income (SSI) is also called "Title XVI" benefits. SSI is for poor individuals or families who have low income and limited resources or assets. It is designed for poverty level persons and families so they can afford the most basic necessities of living, such as food, clothing and shelter. The federal maximum benefit for an individual is $710 a month, more for families.
SSI (Title XVI) does restrict a claimant's income and assets in order to qualify. However, SSI does not require a work record to qualify.
In an SSDI (Title II) claim, the claimant's monthly benefit is based on how long he has worked and the amount of wages he has earned. However, in an SSI (Title XVI) claim, the monthly benefit is based on other income, such as a working spouse or other family member. Living arrangements may also affect benefits under SSI claims.
So please remember that Social Security disability insurance (SSDI) is not a form of welfare. You do not have to be poor or have limited income to get SSDI; you only have to be unable to work because of a physical or mental impairment that is expected to last for 12 consecutive months or longer, or to end in death.
What 2 things do SSDI and SSI have in common?
- Both are administered by the US Social Security Administration (therefore, easily confused)
- Both programs require a person to be blind or disabled to qualify for benefits. (The "medical requirements" for disability are identical under both SSDI and SSI).
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