Health · Chapter 16 · Defining Disability
Loss of Earnings / Income Replacement
Definition
Defines disability by a drop in EARNED income (wages, salary, commissions, fees — never passive income like rent, interest, dividends). Typically requires at least a 20% loss. A policy using this definition exclusively is an income replacement contract.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms