Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Short Term Disability and other Disability Insurance topics.
Individual short term disability insurance is available should you need it. First, determine your need in light of the following information. Five states (RI, NY, NJ, CA, HI) and the Commonwealth of Puerto Rico offer Temporary Disability Insurance (TDI) to all employees working in their jurisdictions. Workers Compensation insurance is mandatory throughout the U.S. to provide benefits for employees injured at their workplace. Many companies offer employer-paid short term disability insurance which covers their entire employee group.
If you are covered by one or more of these programs, estimate your benefit levels and decide if they are sufficient to maintain your household should you suffer a short term disability. For decision purposes, you could estimate a disability lasting up to 26 weeks or make a more detailed outline by inserting the actual benefit periods of your current coverage.
Should you be a highly compensated professional, executive, or self-employed person, you may want to consider enhancing your short term disability coverage. Using well-respected websites, like ProtectYourIncome.com, you can gather information and get quotes for coverage. It is wise to “match” short and long term disability insurance to adequately protect yourself, your family, and your future earnings. Disability statistics indicate a strong likelihood of disability lasting in excess of two years for a significant percentage of the population. Short term disability coverage would certainly help, but a matching long term disability policy should help prevent financial disaster from befalling your household.
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.
|Jennifer Mathes, Ph.D.|