Some Faqs On Short-Term Disability Plans- Part 1

Many people have several doubts in mind about short-term disability, its insurance and the available provisions. Given below are some common questions and answers about short-term disability.

What is short-term disability?
One of the most important questions about short-term disability is the definition of the term and understanding what exactly it means.

Short-Term Disability or STD is a private insurance scheme that provides coverage in case a person is unable to work temporarily due to some injury or illness. While the disabled worker is unable to attend work, this insurance pays a fixed remuneration each month for a particular period of time.

What are the kinds of coverage available under STD insurance?
Some employers provide STD insurance to their employees as a part of the benefits package. In case, a person’s employer does not offer this coverage, it can always be procured from one of the private insurance companies. Some times people may wish to supplement the cover offered by their employer and take additional covers individually.

If the employer provides the coverage, it is termed as group insurance and if a person procures it individually, it is referred to as individual insurance.

What are the benefits of STD?
STD can pay up to sixty percent of a person’s weekly earnings, subject to a maximum of $7500 per month.

The main aim of STD is to enable persons with financially weak backgrounds to easily glide through periods of temporary disability, when the disability makes them unfit to continue working. The purpose is to protect these people against potential loss of income and provide such a protection till the point when the employee is able to resume work. Usually, STD benefits can be availed up to a period of six months.