Short Term Disability Insurance – First Check The Definition Of ‘Disability’

In the event of a disability, an important part of a sound financial plan known as the disability insurance provides a valuable benefit to the qualified ‘disable’. A person who has become disabled due to physical or mental impairment can use the amount obtained from insurance benefit replacing some part of his income.

Generally, short term disability plans refer to a formal plan in which payback commences after sick pay has already been utilized, though reimbursement may be primed of sick leave pay. The money can be utilized to help pay off debts or other expenses.

Short term disability insurance jolts in as soon as disability strikes a person and he is unable to work due to an illness, injury or the delivery of a child. The coverage provided by most employers, ranges from just a few days to as much as one year. In some cases, the number of weeks an individual is eligible for this benefit is based upon how many years he/she has worked in a company. The longer the term of service, the more paid sick leave he/she will get.

An insurance plan covering short term disability usually replaces 40-70 percent of the disabler’s pay packet. However, there are some companies who offer complete paycheck of the salary earned. The general benefit period’s range for short term disability insurance is 1 month to 6 months. There are also some plans available that have terms of up to 2 years.

Before buying any policy, the most important tip is to check the exact definition of ‘disability’. It is possible that various agencies offering the same insurance plan have different definition of disability. Choose the policy that provides the maximum coverage as a percentage of normal monthly salary realized. Go for the policy that favors for longest benefit period and that is ‘non-cancelable’ or ‘guaranteed renewable’.