Short-Term Disability Insurance
What Is Short-Term Disability Insurance?
Before we define what short term disability insurance is, you need to get this properly. The Council for Disability Awareness says that at least one in four workers will experience a period of disability before they retire. Now, are you prepared for such a moment in your life?
Short-term insurance is a unique product specifically designed to replace your income for a relatively short period in case you experience disability. Typically, the benefit period lasts between three and six months, and it covers up to 80% of your gross income.
Short-term disability insurance doesn’t protect you against work-related injuries or accidents but replaces your income if you can no longer work as a result of the injuries. This is critical for anyone who is employed.
What Counts as a “Disability”?
Well, there is no standard definition for a disability that applies across the board. In most cases, the definition of “disability” is policy-specific. However, in general terms, the phrase can be used to refer to injury or critical illness that makes one unable to work.
This may include things such as a terminal illness that requires frequent treatment, major surgery with a relatively long recovery period or an injury suffered in an accident.
Depending on your employer, pregnancy and the subsequent childbirth may also be classified as a disability. The reasoning behind this is that you may still need to use your short-term disability cover to provide income while you are away from work.
Before you sign your policy document, make sure you read the terms and understand them. The definition of disability, according to your policy provider, should be clearly spelled in there.
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Where Can You Get Short-Term Disability Insurance?
In some cases, your employer might provide you with a SDI cover as a benefit. However, a vast majority of employers don’t offer it to their employees since it is not mandatory. Only five states (New York, California, Hawaii, Rhode Island, and New Jersey) require employers to provide their employees with short-term disability cover.
If your employer fails to provide you with SDI cover, you will be forced to purchase it somewhere else. Insurance providers sell short-term disability insurance, and all you have to do is talk to an insurance agent about your needs.
At Insurance Master, we help you find an affordable policy that will cover your income when the unexpected happens. Talk to one of our licensed short-term disability insurance agents today for the best deal.
How Much Will You Get When You Claim Short-term Disability?
When you decide to claim your short-term disability insurance benefits, your time off work is paid. However, the amount of money you receive is dependent on your specific plan and the terms of the agreement between you and your provider.
Some plans offer 100% salary replacement while others only pay a percentage of your pre-disability gross income. Typically, you can be paid anything between 50% and 90% of your gross income. Some companies will also determine how much to award you based on how long you have been with them.
For instance, if you have been with one insurance provider for a relatively long period, you stand a good chance of getting better compensation.