Which type of insurance primarily helps people who cannot work due to a long-term illness?

Long-term Disability Insurance is specifically designed to provide income replacement for individuals who are unable to work due to a long-lasting medical condition or illness. This type of insurance typically kicks in after a waiting period, which could range from a few months to longer, depending on the policy, and it continues to provide benefits for an extended duration, which can vary from a few years up to retirement age.

This coverage is crucial for those facing health issues that prevent them from returning to their job, as it helps to maintain financial stability by covering living expenses, such as rent, mortgage, bills, and other day-to-day costs. By receiving a portion of their salary through this insurance, individuals can focus on recovery without the added stress of financial burdens.

Health Insurance, while essential for covering medical expenses related to illness or injury, does not provide income support during the period of inability to work. Short-term Disability Insurance offers temporary income for a shorter duration than long-term disability, typically for a few weeks to a few months. Life Insurance is intended to provide financial benefits to beneficiaries upon the policyholder's death, and does not apply to situations where an individual is temporarily or permanently unable to work due to illness.