A Closer Look at the Two Types of Social Security Benefits

There are two types of Social Security benefits. There’s SSD, which is Social Security Disability. Now that is based upon the fact that a person is unable to work or has a severe condition that will last at least a year, and, of course, they have not been gainfully employed within the past year. It is work-related. Let’s say you have wages of your work and you are taking the wages out and paying Social Security taxes and sending them into the government. There is like an insured status that is required. So people who are 31-years-old or older, basically it is like you had to have paid in five years out of the past ten years to get those benefits. Of course, those benefits—the monthly amount—would be higher than what you would get under SSI.

The second type of Social Security is SSI, which is Supplemental Security Income. It is also like SSD, based on the fact that you are unable to work because you have a severe condition that will last at least one year, and you have not be gainfully employed in the past year. However, it’s not work-related. You don’t have to pay in any taxes or anything. It is based on need. In other words, it is like a cash assistance. So the amount, therefore, is going to be lower per month that you are going to receive, and it is also based on your assets (restrictions up to a certain dollar amount). So those are basically the two types of Social Security Disability benefits.