Kentucky Health Insurance Practice Exam

The reason that the situation where the amount payable under social security exceeds the rider is not covered by the Social Security Supplement rider is grounded in the purpose of this type of rider. A Social Security Supplement rider is designed to provide additional income benefits to fill in gaps during the waiting period when social security benefits have been applied for but are not yet received. It functions as a bridge to alleviate financial strain during that interim period, especially considering that social security benefits may take time to process.

If the social security benefits that the insured is eligible to receive exceed what is covered by the rider, then the rider would not be activated, as the rider is meant specifically to provide benefits in cases where the social security benefits are insufficient or still pending. Therefore, in instances where the social security payment amounts are higher than what the rider would pay, there is no need for the supplemental benefits to be triggered.

This understanding clarifies how this particular rider is structured to work alongside social security rather than duplicating or overlapping with what is available through social security benefits already in place. Other scenarios outlined in the choices would indicate situations where the rider would be activated, making them valid for supplemental income benefits.