SSDI was introduced in 1991 by the Social Security Administration, an act of kindness that is bestowed on disabled citizens of the United States of America. Social Security Disability insurance (SSDI), commonly known as Disability Insurance Benefits (DIB), can be simply defined as a federal insurance program that provides income to people whose physical disabilities have eliminated their chances of being employed.
These disabled persons receive benefits that include monthly compensation that is financed by the social security taxes paid by citizens of the United States. These social security benefits may be temporal or permanent, depending on the health condition of its beneficiary.
Another social security benefits program that is often confused with SSDI is SSI. Supplemental Security Income SSI, like SSDI, is given to disabled US citizens, but unlike SSDI has strict eligibility and depends on the beneficiary’s financial needs.
Giving a much detailed explanation of the difference between the two social security benefits, SSDI can be likened to health insurance; however, it’s government-organized insurance for strictly disabled citizens. In contrast, SSI can be compared to the government’s aid, also to the disabled.
Citizens that are eligible for SSI benefits must meet the health and financial criteria designated by SSA; however, the income and resources of a beneficiary of SSDI doesn’t affect his eligibility. In a bit, I will explain concisely, how much money you can have in the bank on SSDI.
How much money can you have in the bank on SSDI
Like I said earlier, the SSDI can be explained using the context of a health insurance company. For instance, when one registers for health insurance, he or she pays weekly or monthly or yearly to the insurance company. If, unfortunately, disaster hits, the insurance company pays his/her bills, no questions, no stories.
Coming to SSDI, the beneficiary pays into SSDI when he/she is working, thereby making him/her be “insured.” However, if his/her ability to work is crippled, he/she becomes a full SSDI beneficiary, with no problems and no stories either. And there goes the answer to the question, “how much money can you have in the bank on SSDI?” You could have $70 or $1000 in your bank account; it doesn’t affect your eligibility for SSA benefits regarding SSDI.
On the other hand, there is a detailed income and resource limit for a disabled person to benefit from SSI. It’s like a charity organization; therefore, you have to show proof or meet the criteria set by SSA, to benefit from it. SSI is an asset-based program and largely depends on the current financial needs of a disabled person.
One of the criteria you will see when you click on any of the links displayed above is that a beneficiary of SSI shouldn’t have more than $2000 in both cash and assets as a single person or $3000 as a couple. Those criteria don’t include a house and an automobile owned by the disabled person.
Finally, the amount of money one has in the bank will not restrict him/her from being an SSDI beneficiary, but it certainly counts when it comes to receiving SSI benefits.
Peter Sinenko - Born in Kiev in Ukraine, previously worked as a supply manager at the Zirka Factory. Peter is now officially retired and is happy to share his experience with the readers of Bank Login Lab.