Who Needs To Buy Short Term Disability Insurance?

Short term disability insurance will pay a percentage of your salary should you become injured or ill for a short period of time.

What Is Short Term Disability?

Short term disability (STD) is an insurance designed to protect you in the event you become disabled for a short amount of time. The policy can provide you with a weekly benefits paycheck, which is generally 50, 60, or 66 2/3 percentage of your salary for approximately 13 to 52 weeks.

An STD policy is not expensive and can usually be purchased through your place of employment for a few dollars per week and sometimes as part of a group, which means you will not have to go through a medical exam.

STD policies generally have a cap of up to two years, in which long term disability may take over if you have purchased that option as well. It takes an average of one to 14 days for your STD benefits to kick in and the actual coverage time will depend on your illness or injury. With an injury, your benefits are usually paid immediately, but with an illness, it might take longer in order to prove the illness is disabling.

There may also be additional restrictions on your STD policy placed by your employer, which may require that you use any sick days you have before the benefits begin.

In some instances, your benefits may be retroactive to the first day of your illness.

Why Is Short Term Disability Important?

Three out of 10 people in the work force may become disabled before reaching retirement, and one out of seven may be disabled up to five years or more before that time.

The most common causes for short term disability claims are listed below:

  • Pregnancy (normal) - 21%
  • Injuries (excluding back) - 10%
  • Digestive/Intestinal diseases - 7%
  • Back injuries - 6%

Source: Unum Group

Who Needs to Buy Short Term Disability Insurance?

Should you not have enough in savings to cover living expenses during unplanned time off due to a disability, an STD policy can help you while you recover by paying you a percentage of your salary during this time. It is a vital piece of insurance that one should not go without. You may be able to purchase it through your place of employment. If not, you may purchase an accident policy that will cover you in the instance you are injured in an accident.

If you do not have much in your savings or some other form of income to support you if you become disabled, purchasing an STD policy is a wise choice to cover your family’s needs.

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