Many people who have applied for disability benefits do not understand the difference between Social Security Disability and SSI (Supplemental Security Insurance) benefits.  Many people that I talk to do not know what program they have applied for.  The majority of the time if you have submitted your application with a local social security office then the claims processor will automatically have you apply for both programs.  If you have submitted an application online, you have only applied for Social Security disability benefits because you cannot apply for SSI through the internet.

The reason you want to apply for both programs at the application level is because it is not always clear at that point which program you will fall under and there are some circumstances where you can qualify for both Social Security disability(SSD) and SSI.

There are many differences between Social Security Disability and SSI all of which I cannot cover in one post, but the primary difference between the two concerns how you qualify for them financially.

You are financially entitled to Social Security disability benefits if you have worked in the past and paid into the Social Security Administration through the years.  This will typically be referred to as whether or not you have enough “quarters”.  For most people the best way to know whether or not you have enough quarters is to look at the tri-fold pamphlet that social security sends out once a year giving you a summary of your benefits.  On the inside flap of the social security pamphlet it will give you an estimate of what your disability benefits will be if you become disabled.  If there is an amount in that section, then you have enough quarters.  If there is no amount in that section then there likely will be a footnote at the bottom saying that you do not have enough quarters.

You can think of Social Security disability benefits being similar to car insurance.  For each paycheck you receive a portion goes to social security, which you can think of as the insurance premium.  When you have paid the insurance premium (paid social security) there is a benefit available to you if something goes wrong (you become disabled).  However, if you fail to pay your premium (don’t work) then there will be a time when the benefit is cut off and you no longer have enough quarters.  Many people make the mistake of assuming that if they have paid into Social Security then the disability benefit will always be there.  That is not the case at all, which is why it is very important to apply for disability benefits as soon as it becomes clear you are not going to be able to work for at least 12 months.

If you do not have enough quarters to qualify for Social Security disability then SSI is your only option.  SSI is intended to be a benefit for those that are disabled but yet do not have enough quarters.  From a financial standpoint you qualify for SSI based on need.  You must have a very limited income and limited resources (Individuals: $2,000; Couples: $3,000).  SSI is very much like a welfare system based on disability.

Generally if you qualify for Social Security disability benefits then you will not qualify for SSI benefits, because the Social Security disability benefit is usually more monthly income than SSI will allow.  However, if your disability check is less than $700 a month then you might also qualify for some SSI.

The definition of “disabled” as used by the Social Security Administration means that your medical condition must have prevented you from working for the past twelve months or social security must be able to conclude from your medical records that you will not be able to work for twelve months.

Your disability does not have to be considered permanent to be found disabled.  Once on disability, if your medical condition improves to the point where you can return to work, you must notify the Social Security Administration at which time your disability benefits will be cut off.  Everyone that is on Social Security disability or SSI will have their claim reviewed from time to time.  In New Mexico it seems as though the majority of cases are typically reviewed every three to five years.

When the Social Security Administration is evaluating your disability and your ability to work, they will first look to the jobs you have had the past fifteen years.  If they determine that you are capable of performing any of those jobs, your claim will be denied.  This is why in the initial application, the Social Security Administration will ask you to give them information about jobs you have performed in the past 15 years.

If social security determines that you cannot perform any of your past work, they then will consider whether you are capable of performing other types of work.  This means other types of work that you could reasonably do based on your age, education, transferable skills, and medical limitations.

If social security determines that you are not capable of performing your past work or “other work” then you will be considered disabled.  Once you are determined to be disabled from a medical standpoint you will be entitled to disability benefits as long as you meet the financial requirements for either Social Security Disability or SSI.  Stay tuned for a post on that discussion.