Short-term disability plans provide a basic income for a short period of time for employees who need to take time off work because of a non-work related injury or illness.

These benefits are usually payable for up to six months to coordinate with the waiting period in most Long Term Disability Insurance Policies and the waiting period for Social Security Disability Insurance (SSDI). Some policies extend for twelve months.

Many employers insure this benefit with a Short Term Disability insurance policy. Most larger employers self-fund and self-administer this plan, meaning that they pay the benefits directly and handle the claims and payments internally without use of an insurance company.

Employers in most states provide short term income benefits voluntarily. Employers are required to provide this benefit in California, Hawaii, New Jersey, New York, Rhode Island and Puerto. (To learn more about state-required Short Term Disability Insurance, see: Short Term Disability Income: State Programs).

Generally, there is not a lot of choice about whether to obtain Short Term Disability Insurance, or the terms of the benefits. The benefits are whatever the plan provides. Employees are automatically enrolled in the program.

The employer generally pays the entire cost. (The insurance industry refers to this as "non-contributory.")

If you are permitted to purchase additional coverage, it is usually wise to do so since there are no health questions required to enroll in group Short Term Disability Plans. The more income you can receive when you are out of work for health reasons, the better.

Short term disability plans are different from Sick Leave. They are usually structured to coordinate with employer provided Long Term Disability Insurance and/or Social Security Disability Insurance (SSDI).

If you have a claim under a Short Term Disability program, see: Short Term Disability Insurance: Claims.

If there is a work related injury, see Workers Compensation.

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