Individual disability income policies typically limit the benefit to roughly 60 percent of the insured's earned income in order to:

Giải thích

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.