Disability benefits are typically not paid for which of the following reasons?

Disability benefits are typically not paid for self-inflicted injuries because insurance policies are designed to protect against unforeseen events and risks. When a policyholder intentionally causes harm to themselves, it is viewed as a preventable circumstance, which does not align with the principle of indemnity that underpins insurance. This principle states that insurance should compensate for losses that are fortuitous or accidental in nature, and not for situations arising from the policyholder's own actions. As a result, most insurance contracts explicitly exclude coverage for injuries that result from self-inflicted harm to uphold the integrity of the insurance system and discourage intentional harm.

The other reasons, such as having a loan against the policy, withdrawing all policy dividends, or a disability resulting solely from sickness, do not universally negate eligibility for benefits. Each of those situations may have specific conditions under which coverage could still be maintained, making them less definitive as reasons for denial of benefits.