Life & Health Insurance Practice Exam 2026 – Your All-in-One Guide to Exam Success!

Short-term and long-term disability policies are differentiated primarily by their benefit period length. Short-term disability insurance typically provides coverage for a limited time period, usually ranging from a few months up to a year, while long-term disability insurance offers benefits that can last for several years or until retirement age, depending on the terms of the policy. This differentiation is crucial because it helps individuals choose a policy that aligns with their needs based on how long they may be unable to work due to a disability.

Other options may touch on aspects related to disability policies but do not define the critical distinction. Premium costs can vary for both types of policies but do not inherently create a difference between short-term and long-term coverage. Age requirements for beneficiaries are generally less about the nature of the policy itself and more about eligibility criteria. Job type coverage might also vary, but this is not a standard differentiating factor between short-term and long-term disability policies. Thus, the length of the benefit period remains the fundamental characteristic that sets these two types of policies apart.