What type of policy provides periodic income to an individual who is totally disabled from accident or illness?

An Individual Disability Income Policy is designed to provide periodic income to an individual who becomes totally disabled due to an accident or illness. This type of policy replaces a portion of the insured's lost income, helping them to meet their financial obligations while they are unable to work.

Such policies usually define "total disability" and may offer benefits for a specified period or until a certain age, depending on the terms of the policy. This feature is essential for individuals relying on regular income to support themselves and their families when they cannot engage in their usual work activities due to health circumstances.

The other options, while related to disability and income protection, serve different purposes. For instance, a Business Overhead Expense Policy focuses on reimbursing specific business expenses during a disability rather than providing personal income. A Group Disability Income Policy, on the other hand, covers members of a group and may provide less flexibility for the individual insured compared to an individual policy. Lastly, an Accidental Death and Dismemberment Policy primarily pays benefits in cases of death or certain types of injury, rather than providing ongoing income in the event of a disability.