Why do people typically purchase disability insurance?

People typically purchase disability insurance to provide supplemental income during a period of disability. This type of insurance is designed to replace a portion of lost income if an individual is unable to work due to a disabling illness or injury. Unlike standard health insurance, which covers medical expenses, disability insurance focuses on replacing lost earnings, ensuring that individuals can maintain their standard of living, pay bills, and meet financial obligations while they are unable to work.

The other options do not align with the primary purpose of disability insurance. Covering property damage in accidents pertains to liability or property insurance. Saving for retirement relates to various savings vehicles such as 401(k)s and IRAs, not disability coverage. Funding education costs for children is typically addressed through savings accounts or education-specific plans, making it unrelated to the goal of disability insurance.