How do short-term and long-term disability insurance differ?

The distinction between short-term and long-term disability insurance primarily centers on the duration of coverage each type provides. Short-term disability insurance is designed to offer support for a limited timeframe, typically ranging from a few weeks to a few months, depending on the specific policy. This form of insurance is ideal for individuals who require temporary financial assistance due to disabilities resulting from injuries or medical conditions that do not last long.

In contrast, long-term disability insurance extends coverage for an extended period, often lasting several years or until retirement age, depending on the policy's terms. This is crucial for individuals who may suffer from ongoing or severe health issues that prevent them from returning to work for an extended time.

The other options present distinctions that do not accurately capture the primary differences in duration and the scopes of coverage associated with short-term and long-term disability insurance. Thus, the choice that highlights the limited duration of short-term benefits in comparison to the extended support offered by long-term insurance clearly illustrates the fundamental difference between the two types of disability coverage.