How Much Income Is Usually Replaced with a Private Income

question 102

Multiple Choice

How much income is usually replaced with a private income insurance program for a disability?

• A) 0%
• B) 10-30%
• C) 40-60%, with some plans paying up to 75%
• D) 50-70%, with some plans paying up to 100%
• E) 100%

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Definitions:

Provincial Law

Legislation that is enacted and enforced by individual provinces within a federal system, addressing matters not exclusively reserved for the national government.

Non-specified Benefit Plan

An employee benefit plan that does not define specific benefits in advance but may provide a pool of funds for potential distribution.

Specified Benefit Plan

A retirement plan where the benefits to be received by employees are defined and specified in advance.

Defined Benefit Plan

A retirement plan in which an employer commits to paying a specified pension amount to employees upon retirement, based on factors like salary history and length of employment.