Massachusetts Health & Accident Insurance Practice Exam

What is the maximum benefit percentage of an insured's Primary Insurance Amount under Social Security Disability Income?

1. 50%

2. 75%

3. 90%

4. 100%

The correct answer is: 100%

The maximum benefit percentage of an insured's Primary Insurance Amount under Social Security Disability Income is 100%. This means that an individual can potentially receive a benefit that aligns exactly with their calculated Primary Insurance Amount, which is determined based on their work history and earnings. The Social Security Administration calculates the Primary Insurance Amount using a formula that takes into account the average indexed monthly earnings during the individual's working years. Once an insured individual qualifies for Social Security Disability benefits, they can receive payments that match this Primary Insurance Amount. Therefore, it is possible to receive the entire amount of what one has earned, up to 100%, in benefits if eligible. Other percentages listed are not applicable as maximum benefits under this program, as the structure of Social Security Disability Income is designed to provide full replacement income based on the Primary Insurance Amount.