Other Than Life (OTL) Practice Exam

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Study for the Other Than Life (OTL) Exam. Enhance your knowledge with flashcards and multiple choice questions. Each question features hints and explanations to aid your learning process. Get exam-ready today!

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What type of insurance helps cover lost wages due to illness or injury?

Health insurance
Life insurance
Disability insurance
Property insurance

The correct answer is: Disability insurance

Disability insurance is specifically designed to provide financial support to individuals who are unable to work due to an illness or injury. This type of coverage is essential because it replaces a portion of lost wages, offering a safety net for those facing temporary or long-term disabilities. By ensuring that individuals receive income during periods when they cannot perform their job functions, disability insurance plays a crucial role in maintaining financial stability. While health insurance, life insurance, and property insurance are important forms of coverage, they serve different purposes. Health insurance primarily covers medical expenses and treatments rather than income loss. Life insurance provides financial support to beneficiaries upon the policyholder's death, and property insurance covers loss or damage to physical assets rather than addressing wage loss. Therefore, the focus of disability insurance on income replacement during times when individuals are unable to work due to health-related issues makes it the correct choice for covering lost wages.