Washington Life and Health Insurance Practice Exam

Disability Income Insurance is designed to provide financial support to individuals who are unable to work due to a disability. The primary function of this type of insurance is to partially replace lost income, ensuring that policyholders have some financial relief during periods when they cannot earn a regular paycheck.

The benefits typically offered are usually a percentage of the insured’s prior income, which helps to cover living expenses while they are unable to work. This partial replacement is critical because it allows individuals to maintain a level of financial stability without receiving a full income, given that insurance companies often do not cover total income loss completely.

This product is not intended to cover all medical expenses related to the disability (which is the focus of a different type of coverage), nor does it provide lifelong benefits without concern for the duration of the disability. Therefore, the answer that reflects the reality of the coverage provided by Disability Income Insurance is the option that mentions partial replacement of lost income due to total disability.