Which of the following best describes short-term disability insurance?

Short-term disability insurance is designed to provide income replacement for individuals who are temporarily unable to work due to a medical condition or injury. This type of insurance typically covers a limited period, often ranging from a few weeks to several months, depending on the policy. The key aspect of short-term disability insurance is that it steps in to support individuals financially while they recover and are unable to earn their usual salary.

The other options do not accurately represent the nature of short-term disability insurance. Long-lasting illnesses would generally relate more to long-term disability insurance, which provides coverage for extended periods. While some countries or states may have laws regarding disability coverage, it is not universally required by law for all employers, making that option inaccurate. Finally, covering medical costs related to injuries is more aligned with health insurance rather than disability insurance, which focuses on replacing lost income rather than covering medical expenses directly.