Final answer:
Disability insurance provides pay to an employee out of work due to non-work related injury or illness, differing from workman's compensation that covers work-related injuries.
Step-by-step explanation:
A benefit that provides pay to an employee when he or she is out of work because of a non-work related injury or illness is typically referred to as "disability insurance". This type of insurance is distinct from workman's compensation insurance, which covers injuries that occur on the job. Unlike unemployment insurance, which provides financial support to individuals who lose their job and are actively seeking new employment, disability insurance supports employees who cannot work due to medical reasons not associated with their job. Nonetheless, this kind of benefit can also be an integral part of an employee's total compensation package, especially when ensuring financial stability during health-related absences.