For purposes of disability income insurance, which of the following is NOT considered earned income?

Life settlement proceeds are not considered earned income in the context of disability income insurance because they do not originate from active work or services provided. Instead, life settlement proceeds are the result of selling a life insurance policy, which typically involves the policyholder receiving a lump sum payment in exchange for transferring ownership of the policy to another party. This transaction is not tied to employment or participation in the workforce, and thus does not qualify as earned income.

In contrast, salary, commissions, bonuses, and wages from employment all derive from labor provided or services rendered, directly making them forms of earned income. Interest income can also be seen as a different category altogether, as it comes from investments rather than active work, but it does not hold the same characteristics as the proceeds from a life settlement. In the context of disability income insurance, focusing on the nature of income helps clarify which sources are recognized as earned and relevant for benefit calculations.