Question

Jon's life insurance policy contains a disability income benefit that will pay him a periodic income in the event he becomes disabled. What factor determines the amount of the benefit?

Answer 1

The coverage amount determines the amount of the disability income benefit in Jon's life insurance policy.

Step-by-step explanation:

The amount of the disability income benefit in Jon's life insurance policy is typically determined by the coverage amount he chooses when purchasing the policy.

For example, if Jon selects a coverage amount of $2,000 per month, he will receive that amount as his disability income benefit if he becomes disabled and qualifies for the benefit.

The disability income benefit is usually a percentage of the coverage amount, such as 60% or 70%. So, if Jon selects a coverage amount of $2,000 per month and the benefit percentage is 60%, he will receive $1,200 per month as his disability income benefit.