What defines a short-term disability policy?

A short-term disability policy is specifically designed to provide income replacement for a limited duration when an individual is temporarily unable to work due to a disability. These policies typically cover periods ranging from a few weeks to a few months, depending on the specific terms of the policy. The focus is on addressing short-term illnesses or injuries that prevent the insured from performing their job, ultimately ensuring they maintain some level of financial support during their recovery.

In contrast, coverage until retirement age pertains to long-term disability policies, which are designed for extended periods of disability and do not fit the short-term definition. Long-term healthcare coverage refers to assistance for chronic conditions or long-term care needs rather than temporary disabilities. Additionally, while coverage for any type of disability might seem comprehensive, it does not accurately reflect the short-term nature of these policies, which specifically target temporary situations rather than all possible disability conditions.