Final answer:
The correct policy to cover loss of income due to illness preventing work for an extended period is Disability income insurance.
Health insurance is designed to cover medical expenses, not loss of income due to illness. Germany was the first country to implement worker's health insurance.
Step-by-step explanation:
If K becomes ill after traveling overseas and is unable to work for 3 months, the policy that would cover her loss of income is c) Disability income insurance.
This type of insurance is specifically designed to provide financial support to individuals who are unable to work due to a qualifying disability, which can include illnesses or injuries.
While health insurance covers the costs of medical care, and travel insurance may cover some travel-related issues, it is disability income insurance that offers ongoing financial support when an illness prevents someone from working for an extended period.
To answer the historical part of the question: Germany was the first country to provide health insurance for workers, establishing it under Chancellor Otto von Bismarck in 1883.
The kind of policy that would cover K's loss of income after falling ill during overseas travel for 3 months would be disability income insurance.
Disability income insurance provides income protection for individuals who are unable to work due to illness or injury. It typically pays a percentage of the insured person's income during the period of disability.
Health insurance, on the other hand, primarily covers medical expenses such as doctor visits, hospitalization, and medications. Travel insurance may cover medical expenses incurred during overseas travel, but it typically doesn't provide income replacement for lost wages.