AD Banker Comprehensive Practice Exam

What is the general duration for a Short-Term Disability Policy?

1. 2 weeks

2. 2-3 years

3. 3-5 years

4. Not more than 2 years

The correct answer is: Not more than 2 years

A Short-Term Disability Policy typically provides benefits for a limited period to individuals unable to work due to a temporary illness or injury. The duration of these policies is generally shorter than long-term disability coverage, which may extend for several years or until retirement age. In this case, the correct answer indicates that the maximum benefit period for a Short-Term Disability Policy does not exceed 2 years. This aligns with industry standards where short-term coverage often lasts from a few weeks to a maximum of 2 years, making it suitable for conditions that are expected to resolve within a relatively short timeframe. Choosing the other options would imply a longer benefit period, which is characteristic of long-term disability policies rather than short-term ones. Short-Term Disability is designed to provide immediate assistance but not for the extended periods that are characteristic of long-term planning for disabilities. Thus, the 2-year limitation encapsulates the essence of coverage intended for short-term needs.