People always ask why they can't get 100% of their pre-disability income as a benefit.
There are several reasons but the most important are:
(1) Taxes lower your current income, somewhere between 25% to 40%. Comparing that to a disability benefit that is 60% of your gross income. The amount you receive is almost the same.
Say you receive a monthly income of $10,000 taxes at 40% you actually receive $6,000 after taxes.
When you apply for a disability policy and the company pays you 60% of your $10,000 income the monthly benefit is the Same! $6,000.
So you really are getting 100% of income!
(2) Returning to work:
Companies who pay claims hope you can return to work ASAP. If they paid out 100% of Pre-Tax income there is a disincentive to return to work. If your policy pays less than 60% of income there is more motivation to return to work.