Short-term Disability Insurance

Short-term disability (STD) insurance provides temporary income replacement when you are unable to work for a limited period due to illness, injury, or surgery. It helps protect your income during the early stages of a disability, usually before long-term disability (LTD) benefits begin. This coverage ensures financial stability while you recover and are expected to return to work within a few weeks or months.

The benefit period for short-term disability typically ranges from 15 weeks to six months, though it varies by plan. Payments usually begin after a short waiting period, often between zero and 14 days, depending on whether the disability results from illness or accident. The benefit amount is generally a percentage of your regular income, such as 60 to 75 percent, and may be taxable or non-taxable depending on who pays the premiums.

Example:

If your short-term disability policy replaces 70 percent of your $4,000 monthly income and you are off work for eight weeks after surgery, you would receive $2,800 per month until you recover or the benefit period ends.

What to Watch For:

Review your plan’s definition of disability and the length of the waiting and benefit periods. Some employers provide short-term disability benefits through payroll rather than an insurance company, while others use private insurers. Keep medical documentation from your physician, as insurers require proof of disability to approve and continue payments.