What is the primary factor that determines the benefits paid under a disability income policy?

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Multiple Choice

What is the primary factor that determines the benefits paid under a disability income policy?

Explanation:
Disability income benefits are designed to replace the earnings you lose when you’re unable to work. The amount paid is based on your pre-disability wages, not on what you paid in premiums, how long the policy lasts, or your age. Most policies specify a monthly benefit as a percentage of your past earnings (for example, 60%–80%), up to a maximum, sometimes with offsets for other income. So the key idea is that benefits track your actual earnings, making wages the primary factor determining the payout.

Disability income benefits are designed to replace the earnings you lose when you’re unable to work. The amount paid is based on your pre-disability wages, not on what you paid in premiums, how long the policy lasts, or your age. Most policies specify a monthly benefit as a percentage of your past earnings (for example, 60%–80%), up to a maximum, sometimes with offsets for other income. So the key idea is that benefits track your actual earnings, making wages the primary factor determining the payout.

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