PSI Ohio Insurance Practice Exam

Which type of insurance provides a monthly cash benefit for total disability?

1. Accident insurance

2. Life insurance

3. Disability income insurance

4. Health insurance

The correct answer is: Disability income insurance

Disability income insurance is designed specifically to provide a monthly cash benefit in the event of total disability. This type of policy typically pays a percentage of the insured's income, helping to replace lost wages while the individual is unable to work due to a disabling condition. The primary purpose of this insurance is to ensure financial stability during periods when the insured cannot earn an income because of an illness or injury. In contrast, accident insurance typically covers specific accidental injuries but may not provide ongoing financial support in the form of monthly payments. Life insurance offers a death benefit to beneficiaries upon the insured's death, rather than addressing disability. Health insurance is focused on covering medical expenses rather than providing a direct income replacement during periods of disability. Therefore, disability income insurance is specifically tailored to meet the needs of individuals who cannot work due to a total disability, making it the correct answer to the question.