AD Banker Comprehensive Practice Exam

For which type of health insurance policy would you typically expect a waiting period before benefits are paid?

1. Medicare Advantage

2. Long-Term Care

3. Health Maintenance Organization

4. Short-Term Disability

The correct answer is: Short-Term Disability

In the context of health insurance policies, waiting periods are generally associated with certain types of coverage where benefits are not available immediately upon enrollment. In the case of short-term disability insurance, it is common for policies to include a waiting period before benefits begin. This means that after a qualifying event occurs, the insured must wait a specified duration before they can start receiving financial assistance for their loss of income during the period of disability. Short-term disability insurance is designed to provide income replacement for a limited amount of time if the insured is unable to work due to a short-term medical condition. Since this type of insurance is meant to cover incidents after the waiting period, it's important for policyholders to understand this aspect when they plan for potential income loss. In contrast, other options, like Medicare Advantage, long-term care insurance, and Health Maintenance Organization (HMO) plans, either do not have waiting periods in the same manner or deal with a different type of need or benefit structure that does not typically incorporate a waiting period for coverage to begin.