What type of insurance provides protection for lost wages when an individual cannot work due to illness or injury?

Disability insurance is designed specifically to provide financial support to individuals who are unable to work due to illness or injury. When a person becomes disabled, whether temporarily or permanently, this type of insurance can replace a portion of their lost wages, thereby helping them manage living expenses and maintain their financial stability during a challenging time.

In contrast, health insurance primarily covers medical expenses related to illness or injury but does not offer wage replacement. Life insurance provides financial support to beneficiaries upon the policyholder's death rather than addressing income loss due to disability. Auto insurance pertains to coverage for vehicles and associated liabilities, unrelated to personal income protection. Therefore, disability insurance specifically fulfills the need for income replacement when an individual cannot work.