What is the main difference between short-term and long-term disability insurance?

The main distinction between short-term and long-term disability insurance lies in the duration of coverage. Short-term disability insurance typically provides benefits for a limited period, usually ranging from a few weeks up to six months, depending on the policy and the nature of the disability. This type of insurance is designed to offer immediate financial support during the initial recovery phase after an injury or illness.

In contrast, long-term disability insurance is structured to provide coverage for extended periods, often spanning several months or years, and can continue until the insured individual either recovers or reaches retirement age. This type of insurance is crucial for those who may face prolonged disabilities that prevent them from returning to work.

Recognizing this key difference enables individuals to make informed decisions about their insurance needs based on their potential risks and coverage requirements.