What Is Short Term Disability Insurance And What Does It Provide?

It is inevitable that people will need to take time off of their jobs that is longer than any sick or vacation days granted by their bosses, and this is where short term disability insurance comes into play. While the worker is at home recovering, this type of insurance will compensate them for a part of their lost wages. It can help reduce the stress of having to return to work as quickly as possible, and instead lets them take the time to get well.

This type of insurance is not usually offered along with health insurance or long-term disability insurance available through an employer. This is a benefit that will need to be purchased separately, and as with other insurances, price quotes will differ from person to person. Monthly premiums will have to be paid, and there will be an elimination period before a worker can file a claim to receive benefits. Workers will not be able to purchase these benefits directly before they are needed. In order to have the insurance ready for the person when he or she needs them, they will have to be bought beforehand. It will cover a portion of the person's wages during the time he or she is out of work. The benefit will cover the lesser of 2/3 of the person's income or $5,000.

While many people think that short term disability insurance is used for long absences from a job, it can also be used for people who are out of work for a week due to an illness. Many employers will offer a certain amount of paid sick days which a person can use when they are ill for a few days. Some illnesses take longer than a few days to recover from, and this type of benefit will help them receive some sort of income while they are out of work. The elimination period for an illness can be as little as seven days in many instances.

This insurance is extremely useful for people who are undergoing infertility treatment. A lot of employers choose not to offer benefits this type of treatment to their employees because it is risky and may require more time off of work. The short term disability insurance will help those who need some additional time off after the delivery. Infertility insurance is offered in some workplaces as an extra expense or an add-on to a health insurance policy. This insurance helps to cover the additional expenses required for high-risk prenatal care, conception, and NICU expenses for premature babies.

Another kind of insurance that most employers and health insurance companies will choose not to offer is maternity health insurance. Health insurance companies often lose money with maternity health insurance which can make the rates extremely high. It is helpful to have this type of coverage because the cost of a normal pregnancy can be as low as $7,000 but tends to go up much higher from there. This kind of insurance will cover all of the prenatal care as well as the delivery of the child. Since many employers won't compensate a worker while they are on maternity leave, short term disability insurance will help to cover the bills following the delivery.

Employees can protect themselves from losing money when they encounter a situation that requires time off whether it is planned or unplanned with short term disability insurance. Whether it is for an injury/illness or a planned life event like growing a family, there are plans out there to help an employee with their finances while they focus on their health and their lives.


By Steacy P. Sanchez


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