Question

Which best explains the difference between the cost of disability insurance and long-term care insurance?

Only disability insurance policy holders pay premiums.
Only long-term insurance policy holders pay dividends.
Only long-term insurance policy holders cover costs during sick leave.
Only disability insurance policy holders cover costs during the waiting period.

Answer 1

Only disability insurance policy holders cover costs during the waiting period.

Explanation: Long-term care policies commonly have an elimination (waiting) period before benefits begin, so the insured must cover costs until that period is met. Disability (especially short‑term disability and employer sick‑leave benefits) replaces income and can cover expenses during the waiting/elimination period.