What is the primary purpose of a disability income policy?

The primary purpose of a disability income policy is to provide financial support in case of lost income due to a disability. This type of insurance is designed to replace a portion of the insured's income when they are unable to work because of a covered disabling condition. It provides crucial financial stability during a time when the individual may not be able to earn a living, thereby helping to cover everyday expenses such as bills, mortgage payments, and other financial obligations.

Disability income insurance focuses on income replacement rather than medical expenses or other financial needs, as it specifically targets the risk of income loss due to an illness or injury that hinders the insured's ability to perform their job. By offering a steady stream of income, this policy aims to alleviate the financial stress that accompanies a disability, allowing individuals to focus on their recovery without additional economic pressure.