International Baccalaureate (IB) Practice Exam 2026 – Complete Study Resource

Disability insurance is specifically structured to provide income replacement for individuals who are unable to work due to illness or disability. This insurance serves as a financial safeguard, ensuring that policyholders can maintain their financial obligations and standard of living despite their inability to earn an income from their employment. It typically covers a portion of the individual's salary, allowing them to manage everyday expenses while they recover or adjust to their new circumstances.

In contrast, health insurance focuses on covering medical expenses related to medical treatments and does not provide direct income support. Liability insurance protects individuals or businesses from claims resulting from injuries and damage to other people or property, rather than offering any income replacement. Property insurance safeguards against loss of or damage to property but does not address income loss due to an individual's inability to work. Therefore, disability insurance stands alone as a dedicated solution for income replacement following illness or disability.