Short Term Disability Insurance Benefits
Most people who are employed have health insurance because they know that being in good health can be the difference between holding down a job and being unemployed. However, many of us don’t stop to consider what would happen to us if we were suddenly unable to work for a period of weeks to months due to an illness or injury which would prevent us from carrying on our duties. Short term disability insurance benefits kick in during these times and can provide up to 65% of your pre-disability wages. Of course, this depends on the specific coverage on the policy you choose when purchasing short term disability insurance.
Brief Explanation of Short Term Disability Insurance
As mentioned, short term disability insurance benefits will pay a portion of your salary should you become temporarily unable to work, or in other words, temporarily disabled. According to national statistics in the United States, it is estimated that one out of every seven persons will become disabled for a short period of time and therefore be unable to work at some point prior to retirement. Short term disability insurance is a policy that provides for your financial security during those times when you can probably expect to be temporarily disabled. Most short term disability insurance policies that are part of a group plan are considered to be guaranteed issue and you will not need to take a physical examination in order to qualify.
Most Common Claims against Short Term Disability Insurance Benefits
Although the causes for claiming against a short term disability insurance policy vary from person to person, there are statistics which indicate the most common causes for making claims against a policy. At the top of the list are illnesses such as heart attacks, cancer and diabetes. After illnesses are injuries and after that it appears that back pain follows closely in third place. While arthritis is an illness, it is often listed in a category of its own and is then listed as the fourth most common cause for making claims against short term disability insurance benefits.
How Long Do Benefits Last?
Most often short term disability insurance benefits last between 90 to 180 days but some policies allow for benefits to be paid up to 2 years. However, there is a cap that determines the maximum the insured can receive in any given month. This cap varies from policy to policy and may also be affected by the premiums you are willing to pay. For example, if you pay higher premiums your cap may be higher as well, and vice versa. So, when looking for short term disability insurance, keep in mind that your benefits may be determined by the amount of money you are willing to spend.
The cost of short term disability insurance benefits is affected by several factors. If you are covered as part of a group plan through your place of employment the premiums will usually be significantly lower than if you take out an individual stand-alone policy. Most often this is because your employer will pay a portion of the premiums for you as part of a benefits package. However, if you are forced to find short term disability insurance on your own, the best way to find the lowest possible rates is to compare quotes from several different insurance companies. You can accomplish this quickly and easily from the comfort of your home if you have a personal computer and internet access. Just do a quick online search and within moments you will have several quotes from which to choose.