When Bryce purchased a disability income policy, which of the following best describes the primary purpose of this type of insurance?

• A. To cover all of Bryce's medical expenses resulting from a disability.
• B. To reimburse Bryce for property damage caused by an accident.
• C. To provide income replacement if Bryce becomes unable to work due to illness or injury.
• D. To pay off Bryce's outstanding debts in the event of his death.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of a disability income policy. This type of insurance is designed to provide financial support in the form of income replacement if the insured individual becomes unable to work due to illness or injury.
2. Step 2: Analyze the options provided in the question. The first option mentions covering medical expenses, which is typically the role of health insurance, not a disability income policy.
3. Step 3: Evaluate the second option about reimbursing property damage. This is unrelated to disability income policies and is more aligned with property or auto insurance.
4. Step 4: Consider the third option, which states that the policy provides income replacement if Bryce becomes unable to work due to illness or injury. This aligns with the primary purpose of a disability income policy.
5. Step 5: Review the fourth option about paying off debts in the event of death. This is typically the role of life insurance, not a disability income policy.