The monthly benefit for an individual disability income policy is usually limited to a percentage of the insured's income in order to avoid what?

The monthly benefit for an individual disability income policy is typically limited to a percentage of the insured's income to avoid over insurance. If the benefit were equal to or greater than the individual’s pre-disability income, it could create an incentive for individuals to file claims even for minor disabilities, as they would receive more money while not working than they would earn if they were employed. This limitation encourages individuals to seek coverage without promoting the risk of complacency or malingering. By aligning the benefits with a portion of the income, policies maintain a balance that supports genuine claims while ensuring that the insured does not receive more in benefits than they would have earned, thereby promoting responsible claim behavior.