Which of the following is a key characteristic of disability income insurance?

Disability income insurance is primarily designed to provide financial support to individuals who are unable to work due to a disability. The key characteristic of this type of insurance is that it replaces a portion of the lost income that the individual would have earned had they not been disabled. This financial assistance helps cover essential living expenses, enabling policyholders to maintain their standard of living while they recover from their condition.

The focus on income replacement distinguishes disability income insurance from other types of coverage that may only address medical expenses or short-term financial needs. It is crucial for individuals, especially those who rely heavily on their income for daily living costs, to have this assurance in place.