Which statement best defines 'disability insurance'?

Disability insurance specifically focuses on providing financial coverage for individuals who are unable to work due to illness or injury. This type of insurance serves as a safety net, ensuring that policyholders receive a portion of their income during periods when they cannot perform their job duties because of a medical condition. The benefits are designed to help cover living expenses and maintain the policyholder's standard of living while they recover or adjust to their disability.

In contrast, the other options encompass entirely different aspects of insurance. Vehicle damage costs are covered under auto insurance, property theft is addressed by homeowners or renters insurance, and legal fees are generally a component of liability or legal expense insurance. Each of these alternatives highlights a specific area of risk management that does not relate to the concept of income support during periods of disability.