What is the primary purpose of disability income policies?

The primary purpose of disability income policies is to pay enough to maintain the insured's current standard of living. These policies are designed to replace a portion of the insured's income when they are unable to work due to a disability caused by an illness or injury. By providing a regular income during a time when the insured cannot earn a paycheck, these policies help ensure that individuals can cover their essential living expenses, such as housing, food, and other basic needs.

Disability income policies focus on financial stability rather than medical expenses, funeral costs, or death benefits, which differentiates them from other types of insurance. While medical expenses may be covered by health insurance or other policies, and funeral expenses by life insurance, disability income specifically addresses the income loss and its impact on lifestyle and financial well-being.