What is Short time disability insurance

Short time disability insurance-this type of insurance is aimed to cover a percentage of your salary/income when there is a case of injury or illness that can prevent you from working temporarily.

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It is one of the perfect insurance coverage plan for events which has the possibility to the disable you and reduce your ability to fully carry out your duties at your work place

You should be aware that Short term disability insurance can only cover short-term disabilities that are temporal (events that people recover from generally) For example, maternity leave by a female teacher, a footballer breaking his leg, or a director undergoing minor surgery

However, employers can obtain short term disability insurance for their staff as part of a group.

How Short term disability insurance works

Not every state accept short term there are only a few states that request short-term disability benefits from employers.

According to SHRM, about 80% of companies have the sole responsibility for paying off all the bonuses for both long and short-term disabilities. It is indeed a great job on the part of employers to cover for that. but employee getting short term disability depends on the employer, while some employees are eligible to get short-term disability insurance as soon as they are hired, others will have to wait for a period known as “service wait” to become eligible.

Some companies may require their staff to wait for a specific period to become eligible for short term disability insurance.

Therefore, you must understand the company policy as an employee to know what applies to you.

Duration of short term disability insurance and it’s elimination period.

The required duration of short term disability insurance is usually between 3 to 6 months. At a maximum, a short term disability insurance can only cover up to 52 weeks that is equivalent of one year.

But then In a situation where your case or injury persists after you elapse your short-term disability duration, you can move to long-term disability insurance.

it is also worth knowing that Short term disability insurance also omes with an elimination period. The elimination period stands on how long you have to be injured or sick before you begin to receive your benefits. in which in most cases the elimination period is usually 7 days.

Nonetheless, you may have to wait for as long as 180 to start receiving your benefits in some instances.

in the case where your sickness or injury didn’t reach the elimination period of seven working days as proscribed by the company, you may likely receive paid time off from your employer. Therefore, there will be no need to apply for short-term disability.

Employers are advised to make sure that they ensure clearly and state to their employees how long the elimination period of the company is expected to last beforehand. It will help them understand how long they will have to wait to file for short-term disability benefits.

Conclusion

Unless for your employer, who provides short term disability insurance for you, it is often not wise at your own best interest to purchase one privately. They usually come at a high price and provide benefits for just a short period.