What type of insurance provides income during a disability?

What type of insurance provides income during a disability?

• A. Life insurance
• B. Accidental death insurance
• C. Disability income insurance
• D. Health insurance

Answer: (C)

Disability income insurance is specifically designed to provide financial support to individuals who are unable to work due to a disability. This type of insurance ensures that policyholders receive a portion of their income when they experience a temporary or long-term disability, thus helping to cover living expenses and sustain their financial well-being during such challenging times. This coverage is differentiated from other types of insurance. Life insurance is intended to provide a death benefit to beneficiaries upon the insured's death, making it unrelated to income replacement during a disability. Accidental death insurance pays out a benefit only if the insured dies due to an accident; it does not provide income during periods of disability. Health insurance, while crucial for covering medical expenses, does not offer direct income support during times of disability. Therefore, disability income insurance is the most appropriate choice for providing income during a disability.

Disability income insurance is specifically designed to provide financial support to individuals who are unable to work due to a disability. This type of insurance ensures that policyholders receive a portion of their income when they experience a temporary or long-term disability, thus helping to cover living expenses and sustain their financial well-being during such challenging times.

This coverage is differentiated from other types of insurance. Life insurance is intended to provide a death benefit to beneficiaries upon the insured's death, making it unrelated to income replacement during a disability. Accidental death insurance pays out a benefit only if the insured dies due to an accident; it does not provide income during periods of disability. Health insurance, while crucial for covering medical expenses, does not offer direct income support during times of disability. Therefore, disability income insurance is the most appropriate choice for providing income during a disability.