Valued Basis

What Does Valued Basis Mean?

Valued basis refers to a type of disability insurance benefit in which a person who is injured and unable to work receives reimbursement for their wages based on the exact amount they were earning prior to the injury.

Insuranceopedia Explains Valued Basis

Valued basis disability insurance benefits are crucial for individuals who become disabled, as they allow them to maintain a similar income despite being unable to work. Without this type of benefit, disabled individuals may lose a significant portion of their usual earnings. For instance, a person who earned $50,000 a year before becoming disabled would receive a yearly benefit of $50,000 under a valued basis disability insurance policy.