What percentage of gross weekly income is the Income Replacement Benefit?

The Income Replacement Benefit typically provides coverage at a rate of 70% of a person's gross weekly income. This benefit is designed to offer financial support to individuals who are unable to work due to an injury or illness, ensuring that they still receive a substantial portion of their earnings despite being unable to fulfill their work duties. The rationale behind setting this percentage is to help cover essential living expenses, allowing individuals to maintain a similar standard of living while they recover.

Understanding the significance of this benefit is crucial for clients who are purchasing insurance, as it directly impacts their financial security during times of incapacity. Knowing that 70% of gross income is covered helps both insurance brokers and clients to anticipate and plan for financial needs during recovery periods.