Tennessee Life Producer Practice Exam

What factor affects the amount of monthly disability benefits payable under Social Security?

1. Number of dependents

2. Family income level

3. Amount of benefits available from other sources

4. Duration of the disability

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 is primarily due to the Social Security Administration's effort to ensure that total income, including Social Security Disability Insurance (SSDI) benefits and any other disability benefits received, does not exceed a certain threshold. For example, if an individual is receiving disability benefits from another program, such as workers' compensation or a private disability insurance policy, the Social Security benefits may be reduced so that the combined total does not surpass a predetermined maximum limit. This is designed to prevent individuals from receiving an excessive amount of financial support, ensuring that benefits are distributed fairly within the system and that the purpose of Social Security—serving as a safety net—remains intact. Other factors in the context of Social Security disability benefits, such as the number of dependents, family income level, and duration of the disability, do not directly affect the calculation of the monthly benefits in the same way that the presence of benefits from other sources does. Instead, these may be more relevant to the eligibility criteria or supplemental benefits rather than adjusting the core benefit amount itself.