What is the primary focus of disability income insurance?

Disability income insurance is primarily designed to provide financial support to individuals who are unable to work due to a disability caused by illness or injury. The central function of this type of insurance is to replace a portion of the insured's lost income, which helps to cover their ongoing living expenses during the period of disability.

This type of coverage is especially important because it ensures that individuals can maintain their standard of living and meet financial obligations such as mortgage payments, groceries, and other essential expenses, even when they are unable to earn an income from their job.

In contrast, other options serve different purposes. For instance, providing survivors' benefits pertains to life insurance that offers support to dependents in the event of the policyholder's death. Covering medical expenses relates to health insurance, which helps with costs associated with medical care but does not address income loss directly. Lastly, accumulating savings for retirement is primarily the goal of retirement plans and investment accounts rather than disability income insurance, which focuses specifically on income replacement during periods of disability.