What is covered by a disability income policy?

A disability income policy is specifically designed to provide financial support to individuals who are unable to work due to a disabling injury or illness. This type of policy replaces a portion of the lost income during the period when the insured is disabled and cannot perform their job duties. It is tailored to help individuals meet their living expenses and maintain their standard of living while they are recovering.

The other options do not align with the primary purpose of a disability income policy. Funeral expenses are typically covered under life insurance, while medical expenses are usually addressed through health insurance rather than disability income policies. Long-term care services, like nursing home or assisted living care, are covered under long-term care insurance, not disability income policies. Therefore, the choice highlighting lost income due to a disabling injury accurately reflects the core function of a disability income policy.