You are here: Home Insurance Disability ... Disability ... Summary
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Disability Insurance: Short Term


Next »


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.

For features of short term plans to note, click here.

For information about the tax status of Short Term Disability payments, see Tax.

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. Sick leave is time off for illness, generally with full pay. Most employers provide sick leave even though they are not legally required to do so except under Family And Medical Leave Act (FMLA) or similar laws. Short term disability plans generally require that Sick Leave be used up entirely before short term disability income starts. Some plans will let the employee use Sick Leave benefits to cover the difference between the reduced benefit of the Short Term Disability Plan and the employee's full salary until the Sick Leave runs out.

Short term plans are usually structured to coordinate with employer provided Long Term Disability Insurance and/or Social Security Disability Insurance (SSDI).  SSDI has a 5 month waiting period during which no income payments are paid to people who are "disabled." It is common practice for employer provided Long Term Disability plans to also have a waiting period, generally of six months. Short term disability plans generally fill in the gap between the time a disability starts and the long term coverages start.

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.

Please share how this information is useful to you. 0 Comments


Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.