What does "disability insurance" provide?

Disability insurance is designed to provide financial support to individuals who are unable to work due to a qualifying illness or injury. It typically replaces a portion of the insured person's income, helping them meet their financial obligations while they are unable to earn a paycheck. This coverage ensures that individuals can maintain their standard of living, pay bills, and manage everyday expenses during their period of disability.

While compensation for healthcare expenses and coverage for medical equipment are important aspects of healthcare and related insurance, they are not the primary focus of disability insurance. Instead, the main objective of this type of policy is to provide income replacement, not to cover direct medical costs. Similarly, while a fixed amount to cover daily living expenses may be a feature in some policies, disability insurance primarily targets income loss due to the inability to work. Hence, the focus on benefits for individuals unable to work due to illness or injury accurately captures the essence of what disability insurance offers.