What type of insurance pays a monthly cash benefit following an elimination period for total disability?

Disability income insurance is specifically designed to provide a monthly cash benefit to policyholders who become totally disabled and are unable to work. This type of insurance typically includes an elimination period, which is a specified amount of time the insured must wait after becoming disabled before benefits kick in.

The primary purpose of disability income insurance is to replace lost wages, helping individuals maintain their standard of living while they recover and are unable to earn an income. This kind of coverage is crucial for individuals who rely on their income for daily expenses and financial obligations.

In contrast, life insurance pays out a lump sum to beneficiaries upon the death of the insured, while critical illness insurance provides a one-time benefit if the insured is diagnosed with a specific critical illness. Long-term care insurance covers services for individuals who are unable to perform daily living activities, such as bathing or dressing, but does not specifically provide income replacement during a period of disability. Therefore, disability income insurance is the correct answer for the question regarding coverage that offers a cash benefit after an elimination period for total disability.