What type of policy provides specified income benefits if an insured becomes unable to work?

A disability income policy is designed explicitly to provide financial support to individuals who become unable to work due to an illness or injury that prevents them from performing their job duties. This type of insurance pays a monthly benefit, which can help cover living expenses, allowing the insured to focus on recovery without the added stress of financial burdens.

Disability income insurance is crucial because it addresses the gap that arises when a person's ability to earn an income is hindered. It is specifically tailored to replace a portion of the insured's lost wages, providing a safety net that can help maintain their standard of living. This makes it distinct from other types of insurance, which serve different purposes, such as life insurance, which provides a death benefit to beneficiaries, or critical illness insurance, which offers a lump sum payment upon diagnosis of a severe health condition but does not cover lost income directly. Therefore, the correct choice reflects the specific role of this type of policy in protecting individuals from the financial impact of disabilities.