What Is Short Term Disability Insurance And How To Get One

 

It would be nice if life were predictable. Sadly, it’s not. You can plan and dream, but everyday situations carry the potential for life-altering consequences. A single accident could leave you and your family without income. Even for a short period, this could mean significant financial challenges for most Americans.

Short term disability insurance can provide a layer of protection – it offers peace of mind in the face of life’s unpredictability. Simply put, short term disability insurance, or STD, replaces a portion of your income while you recover from an accident or injury that has left you temporarily unable to work.

Any short term disability can cause a major financial struggle in your life. There are many medical bills to take care of while your regular house bills keep coming and if you have dependents, the situation gets even worse. This is why it’s so important to have some kind of a safety net to support you through this time and help you organize your finances a bit easier.

Short term disability insurance can be this safety net for you and your family, and because of this today we will highlight the meaning and importance of having short term disability insurance.

What is short term disability insurance?

As we mentioned in some of our previous articles, short term disability insurance is a type of insurance plan that pays you a certain percentage of your wage in case you become unable to work due to a disability.

Types of short term disability insurance

You can get short term disability insurance through group plans (group coverage) or individual plans (individual coverage).

In most cases, group coverage is provided by your employer and covers all or a group of employees. The amount of the benefits and the price of the insurance policy depends on the type of job the employee/s do, working hours, salary, and the employment period. When the employment stops, the short term disability insurance stops as well.

On the other hand, individual short term disability insurance policies can be purchased separately from the employer or to get additional coverage for yourself and the insurance policy doesn’t stop with your employment.

How to find short term disability insurance for yourself

The most important thing you need to do first is to find out why you need a short term disability insurance and what type of insurance plan you need. Do you need it to cover a potential injury you may sustain during sport, hobbies or outside of work, or for medical expenses that can happen due to a disease that runs in the family?

Once you’ve decided on the type of short term disability insurance you need, next is analyzing quotes of different providers. There are many online websites that can give you a quote based on a number of questions, or you can go directly to an insurance company to get it.

Finally, based on the results you receive and the information you gather, you need to choose an insurance provider where you will buy your short term disability insurance policy.

After you’ve signed the short term disability insurance agreement, the only thing that’s left is to pay the premiums on a regular basis.

Things to remember about short term disability insurance

  • Short term disability insurance plans usually cover up to 80% of your gross income
  • Disabilities usually include off-the-job injuries while those injuries that are sustained at work fall under workers’ compensation
  • Most short-term disability benefits pay benefits for 30 to 120 days, with a maximum benefit period of 52 weeks. All plans have different benefits and exclusions.
  • There can be some limits on the monthly payment amount of your short term disability insurance.