What is the primary distinction between short-term and long-term disability insurance?

The primary distinction between short-term and long-term disability insurance is that short-term disability insurance provides benefits for a brief period, typically ranging from a few weeks to a few months, depending on the policy. This type of insurance is designed to step in when an individual temporarily cannot work due to illness or injury but is expected to recover in a relatively short time frame.

In contrast, long-term disability insurance is meant for more enduring conditions that may prevent an individual from working for an extended duration, potentially lasting years or until retirement age. The focus here is on the duration of the benefit period, which is more significant for long-term policies. While it is true that premiums for long-term policies can often be higher due to the longer duration of coverage, this is not the primary distinction and does not define the difference in terms of coverage duration.

Understanding these durations is crucial for individuals when deciding which type of insurance would best suit their potential needs, taking into account their personal and financial situation.