When you are involved in an accident that takes away your ability to work and make a living, filing a disability claim can restore a portion of your income. There is not a single disability claim, however, that covers all instances. Making the decision between long-term and short-term disability is a complicated process that requires a full understanding of each type.
Short-term disability, as the name implies, is designed for those who are unable to work for short periods of time. Because these periods of disability are not long – most are covered for three to six months, although some are up to two years – they are among the most-affordable plans available. Short-term disability is also beneficial because of its quick start time. Typically, the coverage begins immediately after the injury or within two weeks. Also, short-term disability usually covers nearly 100 percent of an employee’s income.
Short-term disability plans do have drawbacks, however. While the coverage may pay almost all of an employee’s income, it usually expires after only a few months. This may leave a policy holder in the cold if additional sources of income are not found or if the injury persists. Additionally, there are fewer options for payouts if the policy holder dies, retires, or becomes disabled while under coverage.
Deciding what type of disability insurance is best is often a difficult choice that includes many different factors. Seeking the assistance of a qualified attorney can help those in such situations make an education decision. Losing income because of a disability, while stressful, is not the end of line.
Source: findlaw.com, “Long-term vs. short-term disability insurance,” accessed Sept. 29, 2017