What Does Valued Basis Mean?
Valued basis refers to a type of disability insurance benefit in which a person who is injured and can’t work has their wages reimbursed based on the exact amount they were earning.
Insuranceopedia Explains Valued Basis
Valued basis disability insurance benefits can be extremely important for people who become disabled since it allows them to retain a similar income even though they can no longer work. Without a valued basis disability insurance benefit, people who become disabled may lose a significant portion of their usual earnings. For example, a man who made $50,000 a year before becoming disabled would get a yearly benefit of $50,000 under a valued basis benefit.