Discapacidad y Cuidado a Largo PlazoPregunta 643 de 716
Individual disability income benefits are usually limited to roughly 60 to 70% of earned income so that:
a.The insurer can earn a larger profit
b.The insured retains a financial incentive to return to work, avoiding overinsurance
c.The premium can be set higher
d.The disability benefits would automatically become fully taxable to the insured once they exceed half of prior income
Explicación
Capping benefits below full income prevents overinsurance and keeps a return-to-work incentive, since being disabled should not pay better than working. It is not about insurer profit, premium level, or taxation.
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Preguntas relacionadas de este tema
- A 'split definition' of disability commonly uses:
- A residual disability benefit pays a proportional benefit when the insured:
- Under a presumptive disability provision, the insured is automatically considered totally disabled, often with no elimination period, upon:
- When an individual pays disability income premiums with after-tax dollars, the benefits received are:
- If an employer pays the disability income premiums and does not include them in the employee's income, the disability benefits the employee later receives are:
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)