Massachusetts State Life Insurance Practice Exam

What defines an individual’s eligibility for Social Security benefits?

1. Their age at retirement

2. Their insured status under the program

3. Their earnings during the last five years

4. The total number of dependents

The correct answer is: Their insured status under the program

The eligibility for Social Security benefits is primarily defined by an individual's insured status under the program. To qualify for benefits, a worker must earn enough work credits through their employment, which is determined by their work history and earnings over time. Insured status indicates that a person has paid enough into the Social Security system during their working years, usually through payroll taxes, to be entitled to receive benefits when they retire or if they encounter certain disabilities. While age at retirement is important for determining when a person can start receiving benefits, it does not, by itself, determine eligibility. Similarly, earnings during the last five years and the total number of dependents can influence the amount of benefits or the type of support received but do not establish the basic eligibility required to qualify for Social Security benefits. Therefore, the focus on insured status is crucial, as it encapsulates an individual's whole work history and contributions to the Social Security system, thereby determining their rights to benefits.