New York Child Abuse Identification and Reporting Practice Exam

Which of the following coverage types pays a monthly cash benefit following the elimination period for total disability due to accident or sickness?

1. Health Insurance

2. Disability Income Insurance

3. Life Insurance

4. Long-Term Care Insurance

The correct answer is: Disability Income Insurance

Disability Income Insurance is designed specifically to provide financial support in the form of a monthly cash benefit when an individual is unable to work due to total disability resulting from an accident or illness. This type of insurance typically includes an elimination period, which is a set duration that must pass after the onset of disability before benefits begin to be paid. The primary aim of Disability Income Insurance is to replace lost income, helping beneficiaries maintain their financial obligations and support their living expenses while they are temporarily or permanently unable to earn an income due to their condition. This coverage is essential for individuals who rely on their ability to work to meet their daily financial needs. Other types of coverage, such as Health Insurance, typically cover medical expenses but do not provide cash benefits for lost income. Life Insurance pays a benefit upon the death of the insured, and Long-Term Care Insurance assists with the costs of care services but does not serve the purpose of replacing lost income due to a disability. Thus, Disability Income Insurance is the only option that aligns with providing monthly cash benefits after the elimination period for total disability caused by accident or sickness.