Individual Short Term Disability Insurance


The two types of disability insurance programs provided by the employer's fund, state fund or the insurance companies are – long-term disability insurance and the short-term disability insurance. The most common policy among these two is the short-term disability insurance. In the year 2002-03, almost 3.7 million of employees suffered from some kind of short-term disability.

Now, the insurance for short-term disability is again categorized into two parts - group short-term disability insurance and individual short-term disability insurance. Though it’s seen that group disability insurance is the common source of income during the disability days, yet one can earn more benefits with addition of an individual short-term disability insurance.

Under the individual insurance, the benefits received increase. This means, an additional 10% to 30% along with 60% disability benefits received from an employer's insurance fund as short-term benefits (on the basis of the group insurance policy). Sometimes, the 60% of the benefit received is not enough to maintain a decent living in the wake of loss of regular wages. But, with this combination you receive something extra which makes the total benefits equivalent to almost 90% of your monthly income.

To get the individual insurance, you have to buy extra policies from the insurance company that provides these benefits and pay premiums. A part of the premium is deducted from the salary by the accounts branch of the employer itself. And for the individual plans, the subscriber himself has to pay the premium to the company. Many people don't prefer the individual insurance due to the high rates of premium charged.