True or False: The most commonly overlooked type of insurance is disability insurance.

Disability insurance is indeed often overlooked by many individuals, making the statement true. This type of insurance provides income replacement for individuals who become unable to work due to a disability. While people are generally aware of health, auto, and life insurance, they often underestimate the risk of becoming disabled and the impact it could have on their financial stability.

Many assume that their employer's short-term disability coverage is sufficient or do not think they will ever become disabled. This can lead to a significant gap in financial protection, especially since the likelihood of experiencing a disability may be higher than they anticipate. Having disability insurance can help ensure that essential expenses are covered in the event of an unforeseen circumstance that prevents one from working. Thus, understanding the importance of disability insurance and recognizing its common oversight is crucial in personal financial planning.