Which types of policy are intended to protect consumers against morbidity risk?

The correct choice focuses on types of policies specifically designed to protect consumers against morbidity risk, which refers to the risk of suffering from illness or disability that may impact income and the ability to work. Income protection insurance is a core product aimed directly at providing financial security for individuals who are unable to work due to illness or disability, thus safeguarding their income during recovery or treatment.

Pre-funded long-term care insurance is designed to help cover the costs associated with long-term care, which individuals may require due to chronic health issues or disabilities. This type of coverage is essential for consumers who are concerned about the risk of needing expensive care due to declining health.

Critical illness policy provides a lump sum payment upon diagnosis of covered critical illnesses, such as cancer or heart attack, which directly addresses the financial implications of experiencing serious illness. This can help cover medical costs and assist with household expenses during a difficult time.

In contrast, the other options include types of insurance that predominantly focus on life coverage or investment aspects rather than on providing ongoing financial support in the event of illness or disability. This distinction is critical when considering the objective of morbidity risk protection, reinforcing why the selected answer accurately reflects the policies intended for this purpose.