Which insurance policy type is designed to provide income in the event of a disabling condition?

Disability insurance is specifically designed to provide income replacement to individuals who are unable to work due to a disabling condition. This type of insurance pays out benefits that help cover living expenses, such as rent, utilities, and other obligations, when the policyholder is unable to earn a paycheck because of illness or injury.

Unlike life insurance, which pays a benefit upon the insured's death, or health insurance, which covers medical expenses related to treatments and doctor visits, disability insurance focuses on the economic impact of a lost income due to a physical or mental disability. Long-term care insurance, on the other hand, covers the costs associated with long-term care services, which may not necessarily result from a disabling condition that affects one's ability to work.

Thus, disability insurance stands apart within these options as it directly addresses the need for income support during periods of disability, making it the correct choice in this context.