West Virginia State Life Insurance Practice Exam

Which factor impacts the amount of monthly disability benefits payable under Social Security?

1. The individual's age

2. The amount of benefits available from other sources

3. The individual’s employment history

4. The number of dependents

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

The amount of monthly disability benefits payable under Social Security is influenced significantly by the individual's earnings record and the contributions made to the Social Security system, which are primarily determined by the individual's employment history. However, when considering the impact of other benefits on Social Security disability payments, the amount of benefits available from other sources plays a crucial role. In the context of Social Security Disability Insurance (SSDI), if an individual is receiving benefits from other sources, such as workers' compensation, certain government benefits, or other disability payments, these can offset the amount of SSDI benefits paid. This is due to a provision in the law that prevents individuals from receiving total benefits from all sources that exceed a specific threshold, which is typically 80% of their average current earnings before the disability. Therefore, if a person has access to significant benefits from other sources, their Social Security disability benefits may be reduced accordingly. This ensures that the total income from the combined sources does not exceed the established limits, which is intended to maintain a fair distribution of Social Security funds.