Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase?

The most important factor when deciding on the appropriate amount of Disability Income coverage for an applicant is their monthly income. This is because the purpose of disability income insurance is to replace a portion of the individual's lost income in the event that they are unable to work due to a disability.

By determining the applicant's monthly income, an insurer can better assess how much coverage is necessary to maintain the applicant's standard of living if a disabling event occurs. The coverage amount is often designed to replace a percentage of the income—typically around 60-70%—ensuring that the insured can cover essential living expenses such as housing, food, and healthcare.

While other factors, such as employment status and duration of disability, play significant roles in assessing risk and determining the terms of a policy, they do not directly correlate with how much insurance the applicant should generally obtain. Age can influence the likelihood of disability and pricing, but the fundamental need for coverage is grounded in the income that requires protection.