Multiple choice general knowledge

The amount of disability income is

  1. less than usual pre tax income

  2. equal to pre tax Earnings

  3. greater than pre tax earnings

  4. None of the Above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disability income insurance typically replaces only a percentage (often 50-70%) of your pre-disability earnings, not the full amount. This is because the benefits are tax-free and designed to maintain an incentive to return to work. Option B would create a disincentive to work again.

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