Short-term Disability Insurance: How It Works

​Usually, we don’t think of the possibility that we can get injured and how that could hinder us from working for two or three months. It might trigger you to use up your savings because of this. With this in mind, it’ll help if you’d get more familiar with short-term disability insurance.

​Short-term Disability Insurance: What Is It?
The short-term disability insurance is a plan that can help you pay a fraction of your salary if you become momentarily disabled, meaning you cannot work due to injury or sickness. Typically, it’ll provide you with 60-70% of the pre-disability base salary. It usually lasts three to six months. Short-term disability insurance plans have a cap, which means you’ll receive a maximum amount of benefit per month. 

Short-term disability insurance can either be paid by the employer or the employee and often purchased by groups. If you become sick or disabled, you can start receiving money from the insurance after a waiting period from 0 to 14 days. 

How Does It Work?
You can apply for a benefit from your insurance agent or someone in your company’s Human Resource. You may or may not pay for the taxes for the money that you receive depending on the following:

• You or your company paid the premiums
• If payment is by pre or post-tax

Most short-term disability plans require validation from your doctor that states your condition with estimates of how long you won’t be able to come to work. Your employer may also require that you use some or most of your sick leaves before the insurance start to pay you. 

How the Short-term Disability Plan Differ
Most of the short-term policies have the same features, but they may have different particulars:

• The definition of the disability. Some plans define it as an inability to work at your job while some define it as the inability to work in any positions or “any occupation.”
• Service Wait. Some employers offer this kind of plans after working for them for a set period, like six months or a year. 
• Waiting Period. Also known as the elimination period, the time wherein you become injured or ill and when the plan will start. 
• Benefit Period and Rates. The rates vary but usually 60-70% of your earnings before the disability. The period usually is for three to six months. However, there are some that offer it up for two years.
• Exclusions. Most policies would not cover disabilities if it were due to drug abuse, suicide attempts, committing a crime or war. Injuries acquired while in the job is also not included. 
  
  

CONCLUSION
It is better to take precaution and think of the security of our savings. Becoming disabled is not impossible. It will help if you think about purchasing an insurance plan, that may help you in the time of need. Plan your future well and take good care of yourself.

At Employee Solutions Group, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (833) ESG - SERV. Get your free quote today by CLICKING HERE.