Short-term Disability Insurance

What is the difference between Long-term and Short-term Disability Insurance?

It’s pretty simple actually; one has your long-term future in mind, while the other is for claims shorter in nature.

Short-term Disability

Short-term disability is typically a benefit that’s provided by an employer. When offered, it’s available to all employees, and often requires no underwriting.

While you can purchase short-term plans from private insurers, they are usually only cost effective when purchased through an employer.

Short-term insurance supports individuals who become unable to work for short periods of time (three, six, or nine months), and only replaces a portion of your income as you work towards recovering. The amount of time that you can receive income replacement checks, as well as how much you receive can vary depending on the benefit period and benefit amount that’s initially set up within your policy.

If you’re already covered, we’re happy to review your current coverage to ensure you don’t have any surprises, should you need to file a claim.And if you need coverage, we can help make sure you get the best policy for the lowest price.

Potential pitfalls we can help you navigate:

• Short-term plans generally don’t replace 100% of pre-disability income
• After filing a claim with the insurer, there’s usually an elimination period – this is a pre-determined amount of time that needs to pass before you can start receiving benefits
• Your policy may have exclusions for things that will cause the company to not cover your claim. We can help you understand what those are and how to avoid them
• You will only receive benefits during the time you can satisfy the company’s definition of disabled
• TAXES! If your policy is paid for with pre-tax money, either by you or the employer, the benefit is taxable! However, if the policy is paid with post-tax dollars, your benefit are not taxable. Some employers will allow the employee to choose which option they prefer.

In some circumstances, claims can stretch over several years, so your employer’s coverage might not be enough. We can give you the peace of mind and security you need to continue paying your bills and caring for your family throughout any period of illness or injury.

Now What about Long-term Disability Insurance?