PSI Ohio Insurance Practice Exam

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Prepare for the PSI Ohio Insurance Exam. Utilize flashcards and multiple choice questions with hints and detailed explanations. Gear up for success!

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What type of insurance is designed to provide income replacement for an individual unable to work due to a disability?

Property insurance
Life insurance
Disability income insurance
Health insurance

The correct answer is: Disability income insurance

Disability income insurance is specifically designed to replace lost income for individuals who are unable to work due to a disability. This type of insurance provides financial support, typically a percentage of the individual's salary, to help cover living expenses during the period of disability. It aims to ease the financial burden that comes with being unable to earn an income, allowing the individual to focus on recovery rather than financial concerns. In contrast, property insurance protects physical assets against loss or damage, and life insurance provides a benefit to beneficiaries upon the death of the insured, rather than addressing income replacement in the event of a disability. Health insurance covers medical expenses and may provide some income resources indirectly, but its primary focus is on healthcare rather than direct income replacement during periods of inability to work. Thus, disability income insurance is uniquely tailored to assist individuals facing temporary or permanent disability by ensuring they receive a steady income.