PSI Ohio Insurance Practice Exam

What type of insurance is least likely to cover long-term disabilities?

1. Major medical insurance

2. Short-term disability insurance

3. Workers' compensation insurance

4. Permanently disabled life insurance

The correct answer is: Short-term disability insurance

Short-term disability insurance is specifically designed to provide income replacement for individuals who are temporarily unable to work due to a medical condition or disability. It typically covers short durations, often ranging from a few weeks up to six months, depending on the policy terms. In contrast, the other types of insurance mentioned are generally intended to provide broader coverage or longer-term support. Major medical insurance covers a wide array of health care expenses but does not focus on income replacement during a disability period. Workers' compensation insurance provides benefits for employees who are injured at work or become ill due to work-related factors, and it can cover both short-term and long-term disabilities, depending on the severity and duration of the condition. Permanently disabled life insurance is designed to offer coverage related to life insurance for individuals who are permanently disabled. Thus, short-term disability insurance is least likely to cover long-term disabilities due to its nature of providing support for limited, temporary situations.