If you have a job, it is very likely that you will need short term disability insurance. The possibility of a disabling illness or injury may seem remote, but statistics say otherwise. You actually have a three in 10 chance of suffering a disability* that will keep you out of work for 90 days or longer at some point during your working career. And, 90% of disabilities are caused by illnesses not accidents.
Short term disability insurance pays a percentage of your salary for a specified amount of time, if you are ill or injured, and cannot perform the duties of your job. Generally, the benefit pays around 40 to 60% of your weekly gross income. A short term disability policy can be an employer or employee paid benefit.
When Short Term Disability Coverage Starts
Coverage usually starts anywhere from one to 14 days after you are injured or become ill and are unable to work. The time of coverage may vary from 9 to 52 weeks from eligibility. Depending on where you work, you might be required to use sick days before short term disability kicks in if it’s an illness that keeps you out of work for an extended period of time.
If you are out for longer than the short term disability benefit covers, then either a long term disability plan or permanent disability kicks in. This may happen from 10 to 53 weeks from the date of eligibility. Determination for long term disability is provided by the insurance company's team of doctors and insurance analysts who carefully monitor each case.
Although short term disability may be part of your benefits package at work, you might want to review the coverage to determine if it is sufficient. If you have questions about your coverage give us a call and let's talk about your short term disability insurance needs.