Short-Term Disability Premium

Basically, short-term disability is categorized into two parts – group short-term disability insurance and individual short-term disability insurance. The short-term disability premium structure for both of them is different. There are many guidelines you need to follow to get the benefits. During a short-term disability leave, you will get the benefits of almost 60 to 70% of your salary under the STDI program either from the employer's group disability insurance or from the Social Security Disability Income, SSDI. But, can one ensure that the benefits paid are sufficient?

This is dependant upon the amount paid as the monthly premiums. Your monthly premium of this insurance program is deducted directly from the salary, because it is an insurance plan provided by the employer on behalf of the employee. The amount of premium is determined on the basis of your pay scale, time of service and norms of the organization. It’s mandatory for any employer either of a government, semi-government or private body to have such disability plans and the employees participate by paying the discounted premiums.

The individual disability insurance policy on the other hand is a private purchase by the employees depending upon their individual need. If you buy the private individual short-term insurance, it won't affect the benefits from the employer or group disability insurance. But, now the premiums for an individual insurance plan are not deducted from the salary or the employer. These premiums have to be individually paid for.