As compared to her previous earnings, Christine's disability benefits should be...

Study for the Virginia State Life, Health, and Annuities Exam. Use flashcards and multiple choice questions. Prepare with hints and explanations. Ace your exam!

Disability benefits are typically designed to provide financial support that is a percentage of an individual's previous earnings, rather than matching or exceeding those earnings. When an individual like Christine becomes disabled and qualifies for disability benefits, these benefits often replace a portion of her income in order to help sustain her financial well-being while she is unable to work.

In many cases, disability benefits may be set at levels such as 60% to 70% of an individual's prior earnings, which would result in the benefits being somewhat less than Christine's previous earnings. This structure is intended to offer assistance, while also maintaining an incentive for individuals to return to work if possible.

Therefore, stating that Christine's disability benefits will be somewhat less aligns with how these benefits are typically calculated and provided, reflecting the nature of disability insurance and its role in providing financial support during periods of inability to work, rather than fully replacing a prior income.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy