Social Security Programs
Social Security provides disability and income support programs for Americans who cannot work due to disability or who have limited income and resources. The two primary programs are Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
Social Security Disability Insurance (SSDI)
SSDI Overview
| Feature | Details |
|---|
| Type | Social insurance (earned benefit) |
| Funded by | Payroll taxes (FICA) |
| Based on | Work history and earnings |
| Eligibility | Disability + sufficient work credits |
2025 SSDI Requirements
| Requirement | 2025 Threshold |
|---|
| Work credit earned | $1,810 in wages = 1 credit |
| Maximum credits per year | 4 credits |
| Credits needed | 20-40 (depends on age at disability) |
| Substantial Gainful Activity (SGA) | $1,620/month ($2,700 if blind) |
SSDI Definition of Disability
| Element | Requirement |
|---|
| Severity | Cannot do work you did before |
| Scope | Cannot adjust to other work |
| Duration | Expected to last 12+ months or result in death |
| Standard | "Any occupation" not just "own occupation" |
Key Point: SSDI uses a very strict definition of disability—you must be unable to perform ANY substantial gainful activity, not just your previous job. This is stricter than most private disability policies.
5-Month Waiting Period
| Aspect | Details |
|---|
| Length | 5 full calendar months |
| Starts | From established onset date |
| First payment | 6th month after disability begins |
| Payment timing | Benefits paid following month they're due |
Exceptions to Waiting Period
| Exception | Details |
|---|
| ALS (Lou Gehrig's disease) | No waiting period |
| Prior disability | If disabled again within 5 years |
| Statutory blindness | Expedited processing |
SSDI and Medicare Connection
| Timeline | What Happens |
|---|
| Month 1-24 of SSDI | SSDI benefits only |
| Month 25 | Medicare eligibility begins |
| Exception: ALS | Medicare immediate (no 24-month wait) |
| Exception: ESRD | Medicare after 3 months of dialysis |
Supplemental Security Income (SSI)
SSI Overview
| Feature | Details |
|---|
| Type | Needs-based (welfare program) |
| Funded by | General tax revenues |
| Based on | Financial need, not work history |
| Eligibility | Age 65+, blind, or disabled with limited income/resources |
2025 SSI Limits
| Limit Type | Individual | Couple |
|---|
| Federal benefit rate | $967/month | $1,450/month |
| Resource limit | $2,000 | $3,000 |
| Income limit | Varies (reduces benefit) | |
Countable vs. Excluded Resources
| Countable Resources | Excluded Resources |
|---|
| Cash | Primary residence |
| Bank accounts | One vehicle (primary) |
| Stocks/bonds | Household goods |
| Second vehicles | Life insurance (face value ≤$1,500) |
| Real property (non-home) | Burial plots |
SSI Income Calculations
| Income Type | Treatment |
|---|
| Earned income | First $65 + half of remainder excluded |
| Unearned income | First $20 excluded |
| In-kind support | Reduces benefit (1/3 reduction rule) |
| SNAP benefits | Not counted |
Exam Tip: SSI has NO work requirement—it's based purely on financial need. SSDI requires work history and is funded by payroll taxes.
SSDI vs. SSI Comparison
Key Differences
| Feature | SSDI | SSI |
|---|
| Funding | Payroll taxes | General revenues |
| Work requirement | Yes (work credits) | No |
| Asset test | No | Yes ($2,000/$3,000) |
| Waiting period | 5 months | None |
| Medicare eligibility | After 24 months | Medicaid instead |
| Benefit amount | Based on earnings | Federal rate + state supplement |
Concurrent Benefits
| Situation | Result |
|---|
| Qualify for both | Can receive both simultaneously |
| SSDI amount low | SSI supplements to reach SSI level |
| Combined benefit | Cannot exceed SSI federal rate |
Integration with Private Insurance
Coordination with Disability Policies
| Feature | How It Works |
|---|
| Offset provision | Private policy reduces benefit by SSDI amount |
| All-source maximum | Total benefits capped (usually 70-80% of income) |
| Social insurance substitute | Private policy may require SSDI application |
| Cost-of-living adjustments | May differ between programs |
Return to Work Programs
| Program | Purpose |
|---|
| Trial Work Period | Test ability to work (9 months) |
| Extended eligibility | 36 months of continued eligibility |
| Expedited reinstatement | Quick return if disability recurs |
| Ticket to Work | Employment support services |
Key Point: Many private disability policies require recipients to apply for SSDI and will reduce their benefit by any Social Security amount received. This is called an "offset" provision.