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Short-term disability insurance
What is short-term disability insurance?
A surgery, having a baby, or even an illness can keep you away from work. Short-term disability insurance may give you the financial support you need to pay for housing and food—and even dinners out or diapers—until you are back on your feet, and back to work.
How does it work?
Short-term disability insurance provides you with a check that pays you a portion of your income once your claim is approved, which can help lessen the financial impact of a covered disability. When you purchase short-term disability insurance through work, it can help you manage your expenses without relying solely on your savings.
When deciding to sign up for short-term disability insurance, consider the following:
How much would I need to cover my expenses?Add up your monthly expenses to determine how much replacement income you might need. Then, check the plan your employer is offering you to figure out how much replacement income you are eligible for and see if it fits your needs. Based on the plan, you may have the option to choose a percentage of your current income or a specific dollar amount—up to the maximum amount allowed by your plan. If you choose a percentage of your income, use this formula to calculate how much of your monthly expenses might be covered:
Monthly income X Percentage amount = Potential benefit
How soon would I receive benefits?Depending on your plan, you may be able to start receiving replacement income one week, two weeks, or a month from the date you are unable to work due to a disability covered by your plan. Consider how long your savings will last before you would need replacement income and how other sources of income or insurance might impact your benefits.
How long would benefits last?Short-term disability insurance protects your income typically for up to 13 or 26 weeks.
Your plan costs depend on your age, weekly earnings, and other factors. Consider how a short-term disability plan meets both your needs and your budget.
Short-term disability insurance can help you stay on track so a short-term absence from work doesn’t cause long-term effects on your finances.
SLPC 24557 10/12 (exp. 10/14)
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