Income protection insurance is targeted towards which sector?

• A. Homeowners
• B. Crops
• C. Commercial businesses
• D. Personal health

Answer: (B)

Income protection insurance is primarily designed to provide financial support to individuals if they become unable to work due to an illness or injury. Its main focus is on safeguarding the personal income of the insured rather than insuring physical assets or commercial entities.

Understanding this, the correct sector targeted by income protection insurance is personal health. This insurance plays a critical role in helping individuals maintain their financial stability while they recover from health issues, providing a percentage of their income during the time they cannot earn.

While homeowners, crops, and commercial businesses may also have specific forms of insurance tailored to their needs, they do not encompass the essence of income protection insurance, which directly relates to the individual's ability to earn income due to health-related incapacities. Thus, the focus on personal health is where this type of insurance is properly aligned.