Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 - Free CRPC Practice Questions and Study Guide

Social Security disability benefits are designed to provide financial assistance to individuals who become disabled and are unable to work. These benefits are typically not intended to replace a person’s full income; rather, they serve as a financial support mechanism. The correct statement regarding Social Security disability benefits is that they should be used to supplement individual policies.

Unlike some private disability insurance policies that may offer a higher percentage of a person's income (often up to 60–80%), Social Security benefits often cover only a portion of lost earnings, which may not be enough to maintain pre-disability living standards. Therefore, relying solely on Social Security disability benefits without having additional coverage from private policies can result in financial strain.

Furthermore, the combined benefits from Social Security and a private policy can create a more comprehensive safety net, allowing individuals to maintain their standard of living during times of disability. Having both types of coverage can help ensure that a person has sufficient funds to cover expenses while they are unable to work.