What is the primary purpose of disability income insurance?

The primary purpose of disability income insurance is to replace income lost during a period of disability. This type of insurance provides financial support to individuals who are unable to work due to an illness or injury, ensuring they can maintain a standard of living despite their inability to earn a paycheck.

While covering medical expenses during a disability is important, this is typically the role of health insurance, not disability income insurance. Similarly, providing a death benefit is characteristic of life insurance rather than disability coverage. Funding long-term care expenses is a specific function of long-term care insurance policies, which are distinct from disability income policies. Thus, the focus of disability income insurance is squarely on income replacement, making it an essential safety net for individuals who may face financial challenges due to unexpected health issues.