New York Insurance Exam Practice Question
Which type of insurance protects against financial loss due to disability?
Correct Answer: C
Rationale: Disability insurance specifically provides financial support in the event that an individual becomes unable to work due to a disability, ensuring income replacement during such times.
Option A, life insurance, offers financial protection to beneficiaries after the policyholder's death, not addressing income loss due to disability.
Option B, health insurance, covers medical expenses but does not replace lost income resulting from an inability to work.
Option D, long-term care insurance, assists with costs associated with long-term care services, such as nursing homes, but does not provide income replacement for disabilities.
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