May 8, 2009, Newsletter Issue #56: How Private Short Term Disability Insurance Plans Differ from State and Federal Disability Programs

Tip of the Week

In many areas, short term disability insurance plans are quite similar to the protection offered by state and federal disability programs. Other features can be quite different. Here are some ways to evaluate both types of programs based on similarities and differences.

If you are injured “on the job”, many group short term disability insurance plans look similar to Workers Compensation insurance. State sponsored temporary disability insurance (TDI) programs, available in only five states (RI, NY, NJ, CA, HI) and Puerto Rico offer employer-required temporary disability coverage, so this is not a consideration for everyone. Also, TDI was designed to cover employees who suffer a short term disability outside of their workplace duties. But all U.S. states should have some form of Workers Compensation program for employees, so it makes sense to learn what your state plan offers.

A potential significant advantage of private short term disability insurance plans results from their common definition of disability, which does NOT apply to injuries or illnesses contracted “on the job”. If your disability prohibits your ability to perform the duties of your occupation, regardless of how the disability occurred, private insurance coverage may be better.

You enjoy another advantage with private disability insurance, group or individual, when you compare these contracts to Social Security Disability Insurance (SSDI). Private short term disability plans were created to help you in short term situations. SSDI is not intended to be a short term solution to disability issues. This federal program was designed to be more comparable to a long term disability insurance contract. It simply does not function well when compared with short term disability needs (short exemption periods, quick decisions on disability, rapid benefit response, etc.).

In general, private short term disability insurance plans are more effective than government-sponsored protection. Further, individual short term disability insurance is often more effective than most group disability plans. Use respected informative websites, like ProtectYourIncome.com, to learn how these pieces fit into your disability insurance puzzle. You’ll often make better decisions and choices.

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.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.