Disability insurance, or income protection insurance, is an important form of insurance. This guide helps you understand short term disability insurance, and whether you need this type of coverage.
What is Short Term Disability Insurance?
You can think of disability insurance as insurance for your paycheck. It covers losses if you are unable to work for a short or long period of time. Short term disability insurance protects your income if you are unable to work for 3 to 6 months due to an illness or injury.
Short term disability insurance replaces your income by paying weekly benefits in the event of an injury or illness. Events that may qualify you for coverage could include a broken bone, a mental health incident, a disease that lands you in the hospital, or other events that prevent you from working for up to several months.
How Does Short Term Disability Insurance Work?
Typically, you will be reimbursed for up to 60% of your lost wages. Typically, there is a waiting period before the benefit payments start. This period is usually around 14 days, but could be between one week or one month. Generally, you can receive short term disability benefits for 3 to 6 months. Some plans allow you to receive benefits for as long as one to two years.
Long Term vs. Short Term Disability Insurance
As the name implies, short term disability insurance covers illnesses and injuries that put you out of work for a relatively short period of time. However, it will not cover more serious conditions that may put you out of work for up to several years.
Breeze provides this helpful comparison chart:
How Much Does Short Term Disability Insurance Cost?
The cost of short term disability insurance depends on several factors. These include your benefit amount, benefit period, occupation, health status, age, location, and terms of the policy. For example, if you are an accountant, your premium will lower than if you are a construction worker. Or if you are not a smoker, your premium will be on the lower side. Generally, you can expect your policy to cost between 1 and 4 percent of your monthly income.
Insure Your Paycheck
We provide several easy ways you can receive a free short term disability insurance quote. Through our partnership with Breeze, you are able to receive a short term disability insurance quote in about 30 seconds and apply for coverage in under 15 minutes all online. If you would prefer to speak with an agent, our Life and Health Representative Laryn Hurley can help answer any questions, find a plan that is right for you, and get you coverage in a matter of minutes. Call our Johnson City office at (423) 292-4142 or email us at email@example.com.