What type of insurance benefits individuals who lose their jobs through no fault of their own?

Unemployment Insurance is designed specifically to support individuals who have lost their jobs due to circumstances beyond their control, such as company layoffs or economic downturns. This benefit provides temporary financial assistance to help individuals maintain their living expenses while they search for new employment. It serves as a safety net, ensuring that those who find themselves in unexpected job loss situations receive some income support during their transition.

In contrast, Disability Insurance focuses on providing income to individuals who are unable to work due to a medical condition or injury, rather than job loss. Health Insurance is meant to cover medical expenses, and Liability Insurance protects against claims resulting from injuries and damage to people or property, neither of which relate to job loss circumstances. Therefore, the understanding of Unemployment Insurance as the right choice lies in its targeted purpose to assist those who are unemployed through no fault of their own, facilitating their financial stability while they seek new opportunities.