What does disability insurance primarily provide?

Disability insurance primarily provides income replacement in the event that an individual is unable to work due to a disability caused by illness or injury. This type of insurance is designed to ensure that individuals can maintain their standard of living when they are temporarily or permanently unable to earn an income. It typically pays a portion of the insured's salary or wages, helping to cover essential expenses such as housing, food, and other financial obligations.

This focus on income replacement is what distinguishes disability insurance from other types of coverage. For instance, medical expense coverage is typically associated with health insurance and addresses the costs of medical care rather than providing income when unable to work. Life coverage pertains to paying out a benefit upon the death of the insured, which is unrelated to the incapacity to work. Liability protection, on the other hand, safeguards individuals against claims resulting from injuries or damages caused to others and does not address personal income needs. The primary purpose of disability insurance is thus essential for providing financial stability during periods of inability to earn an income.