Income replacement refers to financial strategies designed to provide a steady income when an individual is unable to work due to unforeseen circumstances, such as illness, injury, or job loss. This can include various forms of insurance, such as disability insurance, which pays a portion of a person's salary during their recovery period, or unemployment benefits, which offer temporary financial assistance to those who have lost their jobs. The goal of income replacement is to help individuals maintain their standard of living and cover essential expenses, such as housing, food, and healthcare, while they are unable to earn their regular income. By having a plan in place, individuals can reduce financial stress and focus on their recovery or job search without the added burden of financial instability.