What type of coverage provides benefits in the form of income in the event of total disability?

Disability income insurance is specifically designed to provide financial support in the form of income if an individual becomes totally disabled and is unable to work. This type of insurance pays a portion of the insured's earnings, helping to cover living expenses and maintain their standard of living during the disability period. The benefits are typically based on the insured’s income prior to the disability and can continue for a specified duration or until the insured reaches retirement age, depending on the terms of the policy.

In contrast, term life insurance provides a death benefit to the beneficiaries upon the death of the insured, but it does not offer any income replacement during a disability. Critical illness insurance pays out a lump sum upon diagnosis of a specified critical illness but does not cover ongoing income needs in the event of a disability. Universal life insurance is a permanent life insurance policy that also includes a cash value component and serves primarily to provide a death benefit, rather than income during a disability. Therefore, disability income insurance is the most appropriate type of coverage for providing benefits as income during total disability.