Which factor determines the maximum disability income benefit that can be purchased by an applicant?

The maximum disability income benefit that an applicant can purchase is primarily determined by the applicant's income. Insurers evaluate the applicant's income to ensure that the disability benefit aligns with their financial needs and potential earnings loss in the event of a disability. Generally, the benefit is structured to replace a percentage of the applicant's income, often capped at a specific limit set by the insurer. This approach helps ensure that the policy provides adequate financial support without encouraging undue claims or fraud, as individuals might otherwise benefit financially from being unable to work.

While employment status, health history, and age can be relevant factors in the overall assessment and underwriting process, they do not directly determine the maximum benefit limit. Employment status may indicate stability or risk, health history is crucial for assessing insurability and premium calculations, and age can influence the risk profile and premium rates. However, none of these factors establish the ceiling for potential benefits as significantly as the applicant's income does.