Valued Basis

Published: | Updated: August 1, 2016

Definition - 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.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.