What is the primary goal of Disability Income Insurance?

The primary goal of Disability Income Insurance is to supplement lost income during health-related absences from work. This type of insurance is designed to offer financial protection for individuals who become unable to work due to a disability resulting from a medical condition or injury. By providing a portion of the insured person's income, this insurance helps to maintain their standard of living during times when they are unable to earn a paycheck.

This compensation is crucial for meeting everyday expenses such as mortgage payments, bills, and other financial obligations, thereby alleviating some of the stress that comes with being temporarily unable to work. It ensures that individuals can focus on their recovery without facing overwhelming financial hardship.

In contrast, the other options serve different purposes. The provision of tax benefits is not the main aim of disability income insurance; rather, it's an additional feature that may or may not apply depending on the specific policy. Covering ongoing medical treatment primarily falls under health insurance, which is intended to cover costs related to medical care rather than lost income. Funding retirement pensions is the role of retirement plans and does not relate to the immediate financial needs associated with disabling conditions. Therefore, focusing on income support during periods of disability is the central objective of this type of insurance.