What is the maximum percentage of wages for the death benefit?

What is the maximum percentage of wages for the death benefit?

• A. 100%
• B. 70%
• C. 50%
• D. 80%

Answer: (A)

The main idea here is how much of the deceased worker’s earnings the death benefit is designed to replace. In this coverage, the benefit is structured to provide full wage replacement, up to 100%. That means survivors can receive an amount that covers all of the insured’s wage income, rather than only a portion. The goal is to keep the household’s income steady after the death, so the maximum is set at 100%. Choosing a smaller percentage would only partially replace wages, leaving some financial gap for survivors. The other options—70%, 50%, or 80%—represent partial replacement, which is not the intended maximum in this design.

The main idea here is how much of the deceased worker’s earnings the death benefit is designed to replace. In this coverage, the benefit is structured to provide full wage replacement, up to 100%. That means survivors can receive an amount that covers all of the insured’s wage income, rather than only a portion. The goal is to keep the household’s income steady after the death, so the maximum is set at 100%.

Choosing a smaller percentage would only partially replace wages, leaving some financial gap for survivors. The other options—70%, 50%, or 80%—represent partial replacement, which is not the intended maximum in this design.