If you get hurt or sick and need to miss work, what are your options to keep up with your bills? Short-Term Disability (STD) benefits provide financial support to replace lost income if you’re recovering from an injury and unable to work. STD insurance can be employer-provided or purchased independently. Typically, STD insurance pays a percentage of your income for a duration of time until Long-Term Disability insurance kicks in. For employer-paid insurance (provided at no cost to the employee), the percent is around 40% to 60% of the employee’s weekly gross income, but this can vary based on the employer’s plan. STD insurance purchased by an employee is similar, but the amount of income paid depends on the policy level purchased.
Coverage for STD benefits can start anywhere from one to 14 days after the injury occurs and can remain active for nine to 52 weeks. Sometimes, employers place restrictions or rules on the STD insurance. For example, some workplaces may require sick days to be used before STD kicks in, and the policy itself can either be paid by the employer or the employee. Proof of the injury or illness provided by a doctor may also be necessary to receive the STD benefit.
Check with your employer to find out more about the STD insurance options available to you. Information to look for includes: percentage of weekly salary paid, the duration of the benefit, and the maximum amount of time covered. Another factor to consider is what state you live in. While some states have mandatory requirements regarding STD insurance, most do not. Always make sure to do your research in regard to benefits.
Content by Lockton Dunning Benefits with info from: https://www.thebalancecareers.com/short-term-disability-basics-1177839