Question

In the event of an illness, a(n) __________ _________ policy would reimburse an insured for loss of earnings. a) Health insurance

b) Disability income
c) Life insurance
d) Property insurance

Answer 1

Disability income insurance is a policy that reimburses an insured individual for the loss of earnings due to an illness or disability.

Step-by-step explanation:

The correct answer is Disability income (option b).

Disability income insurance is a type of policy that reimburses an insured individual for the loss of earnings due to an illness or disability. This type of insurance provides financial protection and replaces a portion of the insured person's income if they are unable to work due to an illness or injury.

For example, let's say an individual becomes ill and is unable to work for a few months. If they have disability income insurance, the insurance company will reimburse them for a percentage of their lost earnings during that time.