Which type of insurance provides payments if the insured becomes disabled?

The type of insurance that provides payments if the insured becomes disabled is credit disability insurance. This coverage is specifically designed to assist borrowers in making loan payments in the event that they become disabled and unable to work. Unlike other types of insurance, credit disability insurance is typically attached to a specific loan, ensuring that the borrower's obligations are met during their period of disability.

In contrast, family income insurance is aimed at replacing lost income when a breadwinner passes away rather than addressing disability. Joint life insurance covers two individuals and pays out upon the death of one, but it does not relate to disability. Term life insurance provides a death benefit if the insured passes away within a specified period; however, it does not offer any benefits for disability. Thus, credit disability insurance is the correct choice as it is specifically tailored to provide financial support during times of disability.