Which option best defines long-term disability insurance?

Long-term disability insurance is specifically designed to provide financial support to individuals who are unable to work for an extended period due to a medical condition or injury. This type of insurance replaces a portion of the insured person's income, thereby helping them maintain their standard of living while they are unable to earn a paycheck due to their disability.

In this context, focusing on income loss is fundamental because the primary purpose of long-term disability insurance is not to cover educational expenses, employment-related injuries, or out-of-pocket expenses. Rather, it addresses the significant impact that prolonged inability to work can have on an individual's financial stability. The coverage typically lasts for several months to several years, depending on the policy terms, which underscores its long-term nature.