Short-Term Disability Insurance provides financial aid for your household while you can’t work due to an illness or injury for up to a year. This can help you pay for your daily expenses such as, rent/mortgage, groceries, utility bills, child care, entertainment, etc. It may also coordinate with benefits from Social Security or Worker’s Compensation.
Facts To Know
Nearly 1 in 3 Americans become disabled (i.e., unable to work for at least 90 consecutive days) at some point during their working years. Without Disability Insurance, paying for life’s regular commitments (bills, etc) will most likely end up coming out of your life’s savings, maxing out your credit cards, or borrowing form others.
- A disability is an illness or injury that prevents you from performing your regular, every day occupation for an extended period of time.
- Short-Term Disability Insurance pays monthly benefits after an elimination period (a period of time between your injury/illness and the start of benefits).
- Your monthly benefit depends on several factors including whether you are totally or partially disabled and the level of benefits you chose when you purchased your policy.
- Your benefits generally continue as long as you are under a physician’s care and are unable to return to work (for the duration of the benefit period you chose when you purchased your policy).
Is Short-Term Disability Insurance Really Necessary?
Short-Term Disability Insurance may not be needed if you have the finances to pay your bills for up to 6 months. On the other hand, Short-Term Disability Insurance makes sense if:
- You can’t afford to pay your bills solely from savings.
- You are your family’s sole or primary wage earner.
- Your other insurance policies (health, auto, home, etc.) have high deductibles or require out-of-pocket payments.
Are You Covered Through Your Job?
Your employer may offer Short-Term Disability Insurance as part of your benefits package or offer it as an option. If you take this option, you will pay the premium. Very commonly, these policies are filled with exclusions and can make you feel like you are protected, when your are really not.
It is highly recommended to purchase an individual Disability Insurance policy through a private insurance advisor. They will be able to customize the policy for you according to you lifestyle, needs, and budget. Policies purchased through your employer very often work for the insurance company and not you.
If you have Disability Insurance policy through your employer, we highly recommend investing in a Supplemental Disability Insurance policy to fill in the “holes” of the policy you purchased through your job, This way, you will be fully protected when you really need it.
Create Your Short-Term Disability Insurance Policy Today
Our experienced advisors are able to answer all of your questions and help you along the way. We can customize a Short-Term Disability Insurance policy for to meet all of your needs and help you achieve full financial protection. Call us at (800) 788-8921 or fill out our brief Contact Form to be called by an advisor directly.