What type of insurance provides payments if a person becomes too sick or injured to work?

Short-term disability insurance is designed to provide income replacement for individuals who become temporarily unable to work due to illness or injury. This type of insurance typically covers a portion of a person's salary for a defined period, allowing them to manage expenses while they recover. It is structured to assist individuals who face short-term limitations in their ability to earn income, typically for situations that last from a few weeks to several months.

While long-term disability insurance also serves a similar purpose, it is specifically aimed at individuals who experience more prolonged periods of incapacity, usually lasting longer than a few months. Health insurance covers medical expenses related to healthcare needs but does not offer income replacement. Life insurance provides financial support to beneficiaries upon the death of the insured, but does not address short-term or long-term work incapacity from illness or injury. Therefore, short-term disability insurance is the most appropriate choice for providing income during temporary work absences due to medical conditions.