April 24, 2009, Newsletter Issue #54: How “Long” Is Short Term Disability?

Tip of the Week

There is a simple answer to the question, “How long is short term disability?” from an insurance perspective. Benefits in the majority of short term insurance contracts are payable to a maximum of one year. Many short term programs last considerably less, some for just 13 through 26 weeks. These programs are not typically designed to serve the function or have the options of long term disability coverage.

Short term disability insurance is sometimes called “cash sickness” coverage or temporary disability insurance (TDI) because it protects people from a typical injury or illness that prevents them from performing their occupations for a short period of time, usually measured in months. This coverage was not created to help you in more serious situations.

People covered by employer-paid short term disability insurance and/or government programs (temporary disability insurance in five states and Puerto Rico or Workers Compensation coverage in all states) should consider matching this insurance with long term protection. Should you suffer an injury or illness that prevents you from working for years instead of months, the difference between long term and short term disability insurance will be graphically displayed with unwelcome results.

Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.

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