Short-term disability insurance protects you in case you become ill or injured and can’t work for several months. This type of coverage, in addition to health insurance, can help protect your financial future. Speak with a knowledgeable agent at M Group Health in Saratoga, California about a short-term disability policy.
What Is Short-Term Disability Insurance?
If you become disabled temporarily due to illness or injury (other than a work-related injury), short-term disability insurance will pay a percentage of your salary while you are out of work. Typically, a short-term disability policy pays 60 to 70 percent of your base salary before you became disabled. Benefits generally last between three to six months. Most policies have a cap on benefit amounts and the length of time you can receive them – up to two years.
Does Short-Term Disability Cover Maternity Leave?
Short-term disability is often used to cover maternity leave. It makes it possible for a new mother to have additional time with her baby and allows her to continue to heal from childbirth and adjust to the changes in her family.
Who Pays for Short-Term Disability – Employer or Employee?
In most cases, short-term disability insurance is purchased as a group at work as part of an employee benefits package. It can be paid by either the employer or the employee. Group short-term disability policies are generally guaranteed issue, which means that a medical exam is not required before you purchase coverage.
How Soon Does Short-Term Disability Kick In after an Illness or Injury?
The waiting period for short-term disability benefits is typically zero to 14 days after you become ill or disabled. The length of time before coverage kicks in will depend on whether you have suffered an illness or an injury. If you sustain a disabling injury at home (or other than on the job), your benefits should kick in right away. If you become ill, however, it may take longer to show that the illness is disabling so you can start receiving benefits.
Some employers have their own restrictions on when short-term disability benefits go into effect. For example, they may require that their employees use all their sick leave before receiving short-term disability payments.
What Is the Difference between Short-Term and Long-Term Disability?
Long-term disability picks up where short-term disability leaves off. When short-term disability benefits expire, long-term disability will pay a percentage of your salary (generally 50 to 60 percent). These benefits last for the length of time stated in the policy or until you go back to work. Some long-term disability policies pay out until you turn 65, as long as you are disabled.
How Much Does Short-Term Disability Cost?
Premiums for short-term disability insurance will be based on a number of factors, including your age, the type of work you do, and your annual income. Our experienced agent at M Group Health in Saratoga, California can help you find a policy that suits your needs at the best available rates.