What type of insurance aims primarily to cover loss of income due to disabilities?

Disability Income Insurance is specifically designed to provide financial support to individuals who are unable to work due to a disabling condition. This type of insurance offers income replacement during the period an insured person is unable to earn income because of a disability. Unlike other insurance types, its main focus is on the loss of income rather than health-related expenses or life coverage.

While term insurance provides a death benefit to beneficiaries upon the insured's passing and health insurance covers medical expenses, neither addresses the income aspect of being temporarily or permanently unable to work. Life insurance also pays upon the death of the insured but does not assist individuals during their working years in case of a disability. Disability Income Insurance fills a crucial gap by ensuring that the insured can maintain financial stability despite the loss of their income.