Short and Long Term Disability

Disability insurance may seem unnecessary to most people, especially the young, but the reality is that a sickness or injury can happen to anybody. According to Guardian, “more than a quarter of today’s 20-year-olds can expect to be out of work for at least a year before they reach retirement age. And some of the most common reasons for disability claims include pregnancy, mental health issues, and cancer.”

In both short and long term policies, a percentage of your income is paid for a set amount of time. The time periods vary based on plan and premium amounts, but in general short term policies are designed for disabilities lasting up to several weeks. Long term disability policies are for much longer and potentially permanent disabilities. There are waiting periods for long term disabilities, so short term policies are often used in tandem to cover the time of the waiting period.

The benefit payments also vary depending on the policy. Short term disability will usually pay a higher percentage of your income than long term disability. For this reason short and long term policies are usually purchased together and are designed to work together. However, if you have an emergency savings to get you through a short term period, it might be more beneficial to spend more on a better long term policy and forego the short term.

How to get covered?

If your policy is offered through your employer, they should have an agent you can reach out to. If your employer doesn’t offer any, please reach out see if we can help. Also, if you’re self-employed, you have options with individual plans and we can help with as well. With all the variations and confusion it’s a good idea to talk to an agent to help figure out which option works best for you and your family.