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"With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's

a. -monthly expenditures at the time of disability
b. -gross income at the time of purchase
c. -gross income at the time of disability
d. -occupation at the time of purchase"

1 Answer

3 votes

Final answer:

Disability Income insurance may limit the monthly benefit amount based on the insured's gross income at the time of disability.

Step-by-step explanation:

With Disability Income insurance, the insurance company may limit the monthly benefit amount a prospective policy holder may obtain based on the insured's gross income at the time of disability. The monthly benefit amount is typically a percentage of the insured's pre-disability income. The insurance company considers the insured's pre-disability income because it reflects their earning capacity and financial need.

User NumenorForLife
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