Question

Beth is a surgeon who has an own-occupation disability income policy. She was injured six months ago and has been unable to return to her practice. Her monthly benefit from the policy is 15,000. During this time, Beth has been working part-time at a local boutique and receives2,000 monthly. What is her ongoing monthly benefit while she is unable to perform her surgical duties?

Answer 1

Beth's ongoing monthly benefit from her own-occupation disability income policy continues to be $15,000, as her part-time income does not affect the benefits designed to cover her inability to perform surgical duties.

Step-by-step explanation:

The ongoing monthly benefit for Beth, a surgeon who has an own-occupation disability income policy and cannot perform her surgical duties due to injury, remains unchanged at $15,000. This is because an own-occupation disability policy typically ensures that the insured receives the full benefit amount if they are unable to perform the specialized functions of their specific occupation, regardless of whether they earn income from a different job or occupation. Hence, even though Beth earns $2,000 working part-time at a boutique, it does not affect her disability benefit from her policy as it is designed to protect her income relative to her trained profession as a surgeon.