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What is short time disability insurance?

short time disability insurance
short time disability insurance

If you desire to foster productivity in a company, implementing short time disability insurance for employers will make the organization more attractive to hires. It ultimately plays a crucial role in ensuring the employees receive an income during illness, injury, or childbirth, thereby maintaining financial stability that fosters loyalty among employees.

This contributes to a resilient and stable workforce that benefits both employees and the organization.

What is short time disability insurance?

As policies vary, short time disability insurance commonly covers you for a limited period, usually between three to six months. It is an income replacement plan that specifies the percentage of earnings before the disability occurred.

It generally covers non-work related activities on accidents and illness that are different from the worker’s compensation. However, it is crucial to note that this policy varies based on state requirements or the provider. But the general options includes:


The employees can choose to pay alone for disability benefits voluntarily.


This is when the employees choose to pay for premiums.


The employees and employer may decide to walk together to contribute to the benefit-cost. 


Here, the employees are privileged to purchase more than one coverage, they are not limited to a number of coverage.

Furthermore, upon enrollment in the available plan options, in the event you become disabled at any time, you are qualify to receive a part of weekly wages.

The range for replacement is from 40% to 70%, and in some scenarios with a maximum monthly benefit. But as the case may be, the predominant reasons for this policy claim are as follows:

  • Illness
  • Accidents
  • Injuries
  • Pregnancy and maternity leave.

To meet these qualifications, the medical situation must not be linked to the workplace environment or your job responsibilities. Otherwise, it could potentially be included in the worker’s compensation insurance coverage.

When does the policy commence after enrollment and how long does it last?

Employees are qualified to receive their first payment on day one of the accident experience. However, the actual start date is eight days after filing your claim.

The duration of the compensation depends on the policy provider but generally may be between 13 weeks, 26 weeks, or 52 weeks.

How to file a claim

To file a claim, you would be absent from work beyond the benefits waiting period as stated in the policy. So, if you’re unsure of how long you will be absent from work due to your disability, just go ahead to fill a claim immediately for early review, to motivate quicker response.

But in the case of surgery or pregnancy, you may report a claim four weeks in advance of a planned disability absence.

 Benefits of Short time disability insurance

Financial Relief

You will access the provision of financial support in a temporal situation of a disability, to help you pay bills and still maintain your standard of living.

Employment stability

The provision of financial support on disability by the firm proves you still have a job position to return to, once you’re fully recovered.

Also Read:  What is Accident Insurance?

Possible limitations you may encounter


It can be expensive if you purchase as an individual other than through an employer.

Employee Retirement Income Security Act (ERISA) Directive

Being subject to this act can limit your legal options when in dispute with your insurer.


Certain types of disabilities, such as already existing conditions or disabilities may not be covered. The policy has exclusions regarding some kinds of disability.


In conclusion, short time disability insurance provides various benefits to foster employees’ loyalty and satisfaction through the various benefits it offers. Hence, the need to carefully evaluate the possible costs, regulations, and exclusions that may apply. This article provides you with detailed information you need on this plan. So ensure you are well covered against any unpredictable disability that is likely to show up while you work.