Tennessee Insurance Practice Exam

What affects the amount of monthly disability benefits payable under social security?

1. Income from life insurance

2. Amount of benefits available from other sources

3. Age at which benefits are claimed

4. Number of dependents

The correct answer is: Amount of benefits available from other sources

The amount of monthly disability benefits payable under Social Security is influenced by the amount of benefits available from other sources. This means that if an individual is receiving disability benefits from other programs or sources—such as workers' compensation, state disability programs, or other insurance policies—these amounts can adjust the final benefit received from Social Security. The rationale behind this is to prevent an individual from receiving a disproportionately high amount of benefits compared to what they would have earned had they not become disabled. Social Security aims to provide a total benefit amount that reflects the need based on the individual's previous earnings and current financial condition, taking into account other disability income they may receive. Other factors mentioned in the options, such as income from life insurance, age at which benefits are claimed, and the number of dependents, do not directly impact the calculation of disability benefits. Life insurance payouts are generally not included in income considerations for Social Security benefits, and the age at which benefits are claimed is more relevant to retirement benefits rather than disability benefits. Similarly, while having dependents can influence certain benefit calculations, it does not play a critical role in determining the monthly disability amount specifically related to Social Security.