It is a common misconception that disability insurance provides financial support for all costs that may arise relating to your injury or illness. What disability insurance actually covers is the income you will lose while out of work due to this. This can affect all aspects of your lifestyle, from meeting your family’s basic needs to being able to cover the cost of unforeseen medical bills.
The best way to protect you and your family is through a disability policy – but what options do you have if you are temporarily unable to work? Below, we’ll break down the basics of short-term disability insurance and how to make sure you receive the security you need.
Short-Term Disability
These policies cover 50-80% of your income and can be used on general living expenses such as food, housing, or even put into savings. These plans are generally offered through an employer and can be paid in full by your company, or employee-elected with premiums deducted monthly from your paycheck. Short-term disability coverage typically lasts between three to six months depending on the details chosen by your employer.
Short-Term Qualifications
Injuries or illnesses that make you unable to do your job temporarily can qualify under short-term disability insurance, depending on the details of your policy. In almost all cases, this must be confirmed by a medical professional. Reasons for using short-term disability insurance can include an accidental injury such as a car wreck or harmful fall, major surgeries, an illness that requires frequent treatment, or even childbirth. Although the Family Medical and Leave Act will protect you from being fired for having a child, illness, or injury, it does not protect your income. It is important to have short-term disability so that you can not only return to your job when you are ready, but also receive payment for the time you are not at work.
Enroll Early
The younger and healthier you are, the more likely you are to receive a low-cost premium. Even as you age, it is a good idea to enroll in your company’s benefit offering as soon as possible. Short-term disability policies do not cover pre-existing conditions, so you want to ensure that you are enrolled in coverage before it is too late. To learn more about your short-term disability offerings, speak with your insurance representative today.