What does a disability income policy typically cover?

A disability income policy is designed to provide financial assistance to individuals who are unable to work due to a disabling injury or illness. This type of policy typically covers wage earners, as they are the ones who generate income that can be lost due to a disability. The intent of such policies is to replace a portion of the income that the insured would have earned while they are unable to work.

Furthermore, while the policy can serve wage earners, it may not be limited only to those with traditional employment. For example, it can also provide coverage for those who are self-employed or work in non-traditional roles, but the primary focus remains on individuals who have an income to protect. This is why the concept of a disability income policy is closely tied to wage earners, as they are directly impacted by a loss of income due to disability.

The other options may imply scope or audience that isn't entirely aligned with how disability income policies are structured, leading to their exclusion as correct answers. In essence, the primary coverage of disability income policies is centered around those actively participating in the workforce and earning wages, which justifies why the focus is placed on wage earners specifically.