Final answer:
Individual disability income policies typically disburse benefits through monthly installments, providing consistent financial support during the period of disability.
Step-by-step explanation:
Benefits for an Individual disability income policy are typically paid out in monthly installments. This method allows the beneficiary to receive a steady stream of income to help cover living expenses during the period they are unable to work due to disability.
Unlike a lump sum payment, which provides a one-time benefit, monthly installments support the insured over an extended period, contributing to financial stability when it's most needed.
Unemployment insurance, on the other hand, is also designed to provide support for a temporary period, usually up to six months, and is similarly funded by employers to assist those who lose their jobs and are unable to find new employment. Therefore, the correct answer for the payout method for Individual disability income policy is B. Monthly installments.