What is the primary purpose of disability insurance?

Disability insurance is primarily designed to replace income when an individual is unable to work due to a disability or illness. This type of insurance helps ensure that individuals can maintain their standard of living and cover everyday expenses, such as rent or mortgage payments, groceries, and bills, when they are unable to earn a paycheck due to their condition.

While covering medical expenses from injuries is a critical aspect of health insurance, and investment opportunities or retirement savings are important financial strategies, they do not directly relate to the core function of disability insurance. The main focus is on providing financial support during periods when one cannot work, making income replacement during disability the essential benefit.