The factor used most often when underwriting a disability income policy is

• A. Age
• B. Occupation
• C. Medical history
• D. Annual earnings

Answer: (D)

Disability income coverage is built to replace a portion of what the insured earns, so the most influential underwriting factor is how much they earn each year. The benefit amount is typically tied to annual income, which drives how large a monthly benefit the policy will pay and how much the premium will be. Age, medical history, and occupation affect risk and pricing, but they don’t determine the benefit level as directly as earnings do. Underwriters verify earnings (through tax returns, pay stubs, or business income) to set the appropriate benefit within the policy’s limits. Because the core purpose is to replace income, annual earnings is the primary factor used in underwriting.