What type of insurance plan pays disability income benefits for injuries sustained at work or at home?

The correct response focuses on an occupational policy, which is specifically designed to provide disability income benefits for injuries sustained while an individual is engaged in their job. This type of policy pays out benefits when a policyholder becomes disabled due to a work-related injury or illness.

Occupational policies are tailored to cover risks associated with specific workplaces, making them essential for individuals whose injuries may arise directly from their job tasks. These policies ensure that employees have the financial support they need in the event of a disability that prevents them from performing their work duties due to an on-the-job injury.

In contrast, other options, such as workers' compensation policies, although related, are designed for a more comprehensive protection framework that covers a variety of work-related injuries and also adds legal and medical expense coverage. Key person policies are intended to protect a business from financial loss due to the death or disability of a crucial employee. Non-occupational policies are aimed at providing income for disabilities that may arise outside of work, thus not suited for the inquiry about both workplace and home injuries.

Understanding the nuances of these policies helps clarify the exact benefits and scenarios they cover, particularly when assessing the appropriate insurance for disability income.