AD Banker Comprehensive Practice Exam

Which of the following benefits is typically not provided by a Short-Term Disability Policy?

1. Income replacement for temporary disabilities

2. Benefits for long-term disabilities

3. Coverage for pregnancy-related conditions

4. Transitioning back to work programs

The correct answer is: Benefits for long-term disabilities

A Short-Term Disability Policy is designed specifically to provide financial support to an individual who is temporarily unable to work due to a medical condition. This policy usually covers a portion of the insured's income for a limited period, typically ranging from a few weeks to several months, depending on the policy terms. The correct answer points to the fact that Short-Term Disability Policies do not provide benefits for long-term disabilities. Those are usually covered under separate Long-Term Disability Insurance policies, which kick in after the short-term coverage ends. Other benefits typically included in a Short-Term Disability Policy often encompass coverage for pregnancy-related conditions and income replacement during the period of temporary disability. Additionally, many policies may also offer support for transitioning back to work after the disability period ends. However, once a disability extends beyond the short-term timeframe, that would fall under long-term coverage. Thus, this clear distinction is what makes the identification of benefits provided by Short-Term Disability policies crucial.