The amount of disability income payments for an on-the-job injury may be reduced by which benefits already paid?

• A. Workers' Compensation Benefits Already Paid
• B. Social Security Benefits
• C. Unemployment Benefits
• D. Private Disability Benefits

Answer: (A)

Disability income policies often include an offset provision that coordinates benefits when more than one source is paying for the same injury. For an on-the-job injury, any workers' compensation benefits that have already been paid or are payable reduce the disability policy’s payment. This prevents duplicating benefits for the same loss. So the disability insurer will subtract the amount of workers' compensation from its own benefit, ensuring the total received reflects the actual economic loss. Other benefits like unemployment payments aren’t tied to the injury, and while some plans may coordinate with Social Security or private disability benefits in different ways, the specific reduction described here is the workers' compensation benefits already paid.