Short-term disability insurance is most usually obtained through an employer-sponsored group plan. Those plans entail “guaranteed approval,” meaning you won’t have to take a medical exam or go through the stringent underwriting associated with an LTD policy. If you’re applying for STDI with a private insurer, however, you will most likely be required to take a medical exam.
Policy terms vary by employer. Some completely cover premiums, while others ask you to pay a small percentage. It’s also common for coverage to kick in only after you’ve worked for a set period of time or if you work full time.
Here are a few general policy guidelines:
- STDI plans typically cover up to 80% of your gross income.
- Disabilities generally include chronic conditions like back injuries, cancer, and heart disease, off-the job injuries and, sometimes, pregnancy. They don’t include injuries sustained at work; those fall under workers’ compensation.
- Most short-term disability benefits replace a portion of your income for 30 to 120 days, with a maximum benefit period of 52 weeks. There are sometimes caps on the monthly payment amount, too.
- Coverage usually kicks in between one to 14 days after the injury or diagnosis, though the exact time frame could vary, depending on whether you’re ill or injured.
- To receive payment, you’ll have to file a claim with the insurer, whether you’re working with them directly or through an employer. To learn exactly how your short-term disability policy works, be sure to review your coverage with a human resource representative or broker.
For more information on how you can get short term disability insurance call Warsh Financial Group