How does short-term disability insurance differ from long-term disability insurance?

Short-term disability insurance is designed to provide income support for individuals who are temporarily unable to work due to a medical condition, which may include pregnancy, injury, or illness. The benefits from short-term disability typically cover a fixed duration, often ranging from a few weeks to a few months, depending on the policy terms. This type of insurance is aimed at offering financial assistance during the initial recovery phase.

In contrast, long-term disability insurance offers benefits for more extended periods, often extending for years or until retirement age, if necessary. This insurance is particularly important for individuals who are unable to return to work due to persistent health issues or chronic conditions that require a longer recovery time.

The distinction in the duration of coverage is what fundamentally sets these two types of disability insurance apart. Short-term disability is tailored for temporary absences, while long-term disability insurance is intended to provide ongoing support for serious, long-term health challenges.