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What Is the Difference Between Title II and Title XVI Disability?

By February 3, 2025February 7th, 20256 min read

If you’ve ever heard the term Title II (2) or Title XVI (16) benefits, you might be wondering what they refer to. These terms correspond directly to what is more commonly known as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits, respectively. Title 2 and Title 16 come from the parts of the Social Security Act that discuss each type of benefit. Although SSDI and SSI have similarities, these services are more different than they are alike. If you have a disability, are nearing age 65, or are over age 65, you likely are considering what financial options are available to you, including Title 2 and Title 16 benefits.

What Is Title II?

Title 2, or SSDI, provides eligible individuals with monthly cash payments. These benefits, paid for by the Social Security Trust Fund, are not needs-based, so there are no income or asset restrictions that will influence whether you will qualify to receive benefits or what your monthly benefit amount will be. However, to receive these benefits, you must meet the federal definition of disability. According to the Social Security Administration (SSA), having a disability means you are unable to participate in any substantial gainful activity (SGA) due to substantial physical or mental impairments that are either expected to last at least twelve consecutive months or result in your death.

Additionally, you must have enough work credits to qualify for these benefits. Generally, 40 credits are required for SSDI; 20 of those credits should be earned within the 10 years before your disability began. However, it’s possible for younger workers to qualify for SSDI with fewer than 40 credits. Work credits are earned each quarter that you earn wages and pay into the Social Security system. As a result, the amount you earn each month is determined by the amount you paid into the system over your lifetime of employment before you became disabled.

Once you have received Title 2 benefits for two years, you are automatically enrolled in Medicare for health insurance coverage. You may also be awarded retroactive benefits for a period of time when you were disabled but had not yet been awarded benefits.

The SSA’s Disability Requirements

SSA uses a five-step process to review SSDI claims.

Step 1

Substantial Gainful Activity

The SSA needs to know if you are earning money. In 2024, you cannot earn more than $1,550, or $2,590 if you’re blind, per month. If you do surpass this threshold, you will most likely not be considered disabled.

Step 2

Condition Severity

The SSA considers the severity of your condition. Whatever condition you have must greatly limit your ability to perform basic work duties that involve lifting, standing, walking, sitting, or remembering for at least a year. If your condition doesn’t meet the SSA’s severity standards, it will not grant you SSDI benefits.

Step 3

Qualifying Medical Conditions

The SSA keeps a list of physical and mental conditions considered serious enough to keep someone from performing SGA. If your condition is included on the current adult listing or childhood listing, the SSA will likely find you have a qualifying disability; if your condition is not listed, you will proceed to Step 4.

Step 4

Ability to Perform Past Work

The SSA must decide if your unlisted condition prevents you from working, including past work experiences. Those who can perform work, even a job held in the past, will not be eligible for disability benefits since the SSA deems that an ability to work and earn income.

Step 5

Ability to Perform Other Work

If you are unable to work in an industry or job role you held in the past, the SSA will see if there is other work you could perform with your condition. Aside from medical conditions, the SSA also considers age, education, past work experience, and transferrable skills. If the SSA determines someone cannot do any other work, SSDI benefits are granted. However, if the SSA decides someone can work in a different or new role, SSDI benefits are denied.

What Is Title XVI?

Unlike SSDI, Title 16, or SSI, is a needs-based program paid for by general funds. SSI was created when state welfare programs for the blind, disabled, and elderly were federalized. These benefits are reserved for low-income individuals with few assets. Although SSI still has a disability component, the income threshold is extremely low, and benefits are designed to help SSI recipients with basic needs. The federal government sets a maximum SSI monthly award amount, but individual states have the option to supplement that award amount and many do. Immediately upon being approved for SSI benefits, you will qualify for Medicaid health insurance coverage.

SSI is awarded to individuals who earn less than $1,971 per month. SSA will also value other sources of income and assets; individuals cannot have more than $2,000 in total resources, including money in bank accounts, vehicles, investments, and other assets. Couples cannot exceed $3,000.

Can You Earn Concurrent Title 2 and Title 16 Benefits?

Sometimes, people qualify for both Title 2 and Title 16 benefits, called concurrent benefits, if they meet the strict criteria for both. Concurrent benefits typically apply to individuals who qualify for SSDI but receive a low monthly payment due to limited work history or low wages in recent years. If the SSDI payment is below the Federal Benefit Rate (FBR) of $943 per month, the claimant may qualify for SSI. For example, someone receiving $850 a month in SSDI could potentially receive an additional $93 from SSI. The advantage of concurrent benefits is that SSI payments can raise the total monthly benefit to the maximum allowed, improving financial stability. Additionally, qualifying for SSDI provides access to Medicare, which becomes available two years after SSDI eligibility begins, which may make healthcare more accessible than Medicaid.

When to Talk With an Attorney

If you are looking into Title II and Title XVI disability benefits, you should consider speaking with a trusted attorney. The Social Security disability team at Jeffrey Freedman Attorneys can review your claim and discuss all of your available options. We can also help you apply for benefits or appeal your case if you’ve already applied and been denied. Reach out today to learn more and schedule a consultation.