What type of insurance policy typically covers long-term disability?

The correct answer is tied to the specific purpose and design of long-term disability insurance policies. Long-term disability insurance provides financial support to individuals who cannot work due to a disabling condition that lasts an extended period. This type of policy is meant to replace a portion of lost income and often covers disabilities that persist for longer than 90 days, sometimes extending up to several years or until retirement age, depending on the policy.

In contrast, term life insurance is primarily designed to provide a death benefit to beneficiaries if the insured individual passes away within a specified term, rather than addressing income replacement due to disability. Short-term disability insurance, while similar in purpose, only provides coverage for a temporary period, typically up to three to six months, and does not sufficiency cover prolonged disablement. Whole life insurance, on the other hand, combines a death benefit with a savings component, paid out upon death, and does not provide regular income in the event of a disability.

Thus, long-term disability insurance specifically addresses the financial implications of being unable to work for an extended period due to a significant impairment, making it the most appropriate choice for this question.