Fundamentos de Accidente y SaludPregunta 473 de 716
Individual disability income policies typically limit the benefit to roughly 60 percent of the insured's earned income in order to:
a.Comply with Medicare requirements
b.Preserve the insured's incentive to return to work and avoid overinsurance
c.Match the way property insurance works
d.Reduce the insurer's advertising costs, which has nothing to do with how benefit limits are set
Explicación
Disability income benefits are capped at a portion of income (often around 60 percent) because disability benefits are generally received income-tax-free when the individual paid the premiums, so replacing too much income could leave the insured better off not working, creating a moral hazard. The limit is not about advertising costs, Medicare, or property insurance. Keeping the benefit below full pay maintains the insured's motivation to recover and return to work.
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Preguntas relacionadas de este tema
- A 'calendar-year' deductible in a medical plan means the insured must satisfy the deductible:
- A 'family deductible' provision in a medical plan generally:
- The 'coordination of benefits' (COB) provision in group health insurance is designed to prevent:
- Under a 'presumptive disability' provision in a disability income policy, the insured is automatically presumed totally disabled upon:
- A 'recurrent disability' provision in a disability income policy determines:
- A residual (partial) disability benefit pays when the insured:
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)