What is the maximum percentage of income that can be covered under an individual disability policy?

Under an individual disability policy, the maximum percentage of income that can typically be covered is often around 60%. This percentage is designed to provide a benefit that helps to replace a portion of the insured's income while still encouraging them to return to work when able.

Insurers limit the coverage to around 60% for several reasons. Primarily, it is intended to ensure that individuals have an incentive to return to their jobs or seek other forms of employment when they are capable. Additionally, this percentage helps to prevent situations where an individual might earn more from their disability benefits than they would from working, which could lead to a disincentive to work.

It's important to note that the specific percentage can vary based on the policy and the insurance provider, but the 60% figure is a common standard across many policies, making it a reasonable answer in this context.