In the event of an illness, which type of policy would reimburse an insured for loss of earnings?

Disability income insurance is designed specifically to provide financial support by reimbursing a portion of the insured's lost earnings due to a disability that prevents them from working. This type of insurance is extremely important because it helps individuals maintain their financial obligations when they are unable to earn an income due to an illness or injury.

The policy typically replaces a percentage of the individual's monthly income, ensuring that they can cover essential expenses, such as mortgage payments, utility bills, and everyday living costs. Unlike health insurance, which covers medical expenses, or life insurance, which pays out a death benefit, disability income insurance directly addresses the loss of earning potential due to a disabling condition. Critical illness insurance provides a lump sum payment upon the diagnosis of a specified serious illness but does not replace lost income, making it less relevant for this scenario.