An injury or illness that prevents you from working can leave you financially stranded without short time disability insurance. The fact is, most people mistakenly believe this insurance only applies to on-the-job accidents but this is not the case.
It covers chronic sicknesses, injuries, or conditions that lead to disabilities outside of work. As a worker, this plan may be crucial to help you return to your job.
Therefore, it’s necessary to learn more about this insurance plan. In this article, you will find basic information on Short Time or Short Term Disability (STD) insurance and how it supports workers with disabilities.
Overview of short time disability insurance
A single injury or medical condition can make it impossible for you to earn a living. During this time, you may need treatment or recovery which can take a while. Being unable to work can also affect your financial obligations and peace of mind.
Unless short time disability insurance comes to the rescue, assuming you enrolled before your health condition. It provides relief by replacing 50% of your paycheck and continues for a short period.
In essence, you get your salary without putting in the work almost like a paid leave. Mothers on maternity leave are also covered by this insurance.
What is covered in short time disability insurance?
Temporarily, you can enjoy coverage for off-the-job accidents or serious conditions that prevent you from working. Before submitting a claim, ensure that the disability is not something covered by worker’s compensation.
This policy does not apply for work-related issues; however, it provides coverage for:
- Injuries that result in dislocation or head trauma
- Critical illness like stroke, cancer, or arthritis
- Pregnancy and childbirth
- Surgery and rehabilitation
How short-term disability insurance works
To benefit from short time disability insurance, you need to purchase a policy from an insurance company or reputable broker. Additionally, you must have a qualifying disability to be eligible for a payout.
During the documentation process, ensure that you include medical results or reports proving the existence of your condition. Any document you attach must be signed by a certified medical professional.
After this, you must wait through the elimination period which is the period from your claims submission until benefits kick in. This period may range from seven to thirty days depending on your insurance company.
Benefits will continue for about six months unless you return to work before then. However, you can combine it with long-term disability insurance to extend your benefits.
If you are receiving state-mandated disability benefits, it may cost you part of your payment. This means you will not get the full payments like those without state benefits
Benefits of short time disability insurance
Faster recovery
With disability insurance funding your needs, you can focus on your health for a while. Also, the financial burden that comes with getting healthcare can be avoided. You can easily afford your treatment allowing you quick recovery.
Income recovery
Disabilities often force people out of their jobs, creating financial hardship. However, with a policy to protect you from the effects of income loss, the impact may reduce. Short term disability insurance helps with income replacement to cushion the blow of your condition.
Financial support
In America, one in four workers leave their jobs abruptly due to disability. This rips people of their source of income. Conversely, STD insurance provides financial assistance during the recovery period.
Conclusion
In summary, STD insurance creates a soft landing from health conditions that could otherwise cause financial distress. Find out the insurers offering this policy and make a move towards securing a better future.
