Supplemental Security Income
What Does Supplemental Security Income Mean?
Supplemental Security Income (SSI) is a program established by the United States government in 1974 to replace federal and state adult assistance programs. As part of the Social Security Act, SSI provides stipends to low-income individuals who are disabled, blind, or 65 years of age or older. It is funded through the U.S. Treasury’s general funds, and currently, around 8 million Americans benefit from it. Because SSI payments are modest and only cover basic needs, many recipients under 65 also look into private disability insurance earlier in their careers to protect their income if illness or injury later prevents them from working.
Insuranceopedia Explains Supplemental Security Income
Although the application form for Social Security benefits is the same as that for SSI, the two programs are quite different. Some of the key distinctions between them include:
- Unlike Social Security benefits, SSI benefits are not based on the individual’s or their family member’s prior work history. In contrast, individuals who pay Social Security taxes and work for a sufficient duration are eligible to receive Social Security benefits.
- Many states provide SSI beneficiaries with medical assistance to help cover doctors’ bills, hospital stays, and other medical expenses.
- Additionally, many states offer supplemental payments to certain SSI beneficiaries.
Even with state medical assistance, SSI recipients often face gaps in coverage, so it can be worth reviewing ways to lower your health insurance rates if you need to supplement what SSI and state programs provide. Older recipients sometimes also consider final expense life insurance to cover funeral costs their families might otherwise struggle to pay on a fixed income.
