Short-Term Disability
Short-Term Disability (STD) insurance provides income protection if you’re unable to work due to an illness, injury, or other health-related issues that prevent you from performing your job. Unlike workers’ compensation, which covers work-related injuries, STD insurance applies to non-work-related injuries and health issues.
Purpose of Short-Term Disability Insurance
- Your #1 asset is your ability to earn an income. Unfortunately, many Americans live paycheck to paycheck and worry about how they will manage if they are unable to work.
- Short Term Disability pays you a monthly income and can provide a significant amount of relief to those who find themselves unable to work, if even for a short period of time.
What Does Short-Term Disability Cover?
- Replaces your income if you become disabled and are unable to work.
- Disability can be temporary or permanent.
How it Works
- If you become disabled, whether from a sickness or an injury, and are unable to perform your normal duties at work. You will receive a monthly replacement income check.
- You may choose the amount of Income replacement benefit however cannot exceed 60% of your monthly compensation.
- You may choose either a 6-month or 12-month benefit period.
Benefits of Short-Term Disability Insurance
- Protection Against Income Loss: Even if you have savings, taking time off without income could quickly deplete your finances. STD insurance provides a reliable, predetermined benefit that mitigates this risk and helps you maintain a stable financial footing.
- Income Protection During Recovery: STD insurance replaces a percentage of your salary (up to 60%) if you’re unable to work due to a non-work-related illness or injury. This benefit helps cover essential expenses like mortgage, utilities, groceries, and medical bills while you’re out of work.
Who Needs Short-Term Disability Insurance?
- Many people do not have enough savings to cover three to six months of living expenses. Short-term disability insurance can provide a temporary income stream to help cover bills, rent, and essential expenses during recovery.
- Someone with pre-existing health conditions. Those managing chronic or recurring health issues may experience bouts of time off work. Short-term disability can provide some income stability during those periods.
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