Short-term disability (STD) income insurance is fairly self-explanatory; it is only available for short-term coverage periods. In other words, once a person becomes disabled, the benefit period kicks in. The benefit period varies; it can last for 13 weeks, six months, or up to one or two years. From the time a person is disabled to the time the benefits kick in, there’s the elimination period. It’s also referred to as the waiting period. In some cases, there’s no waiting period. This means that the day you’re disabled you receive your benefits. Some short-term plans have a seven-day waiting period while others have a 14-day or 30-day waiting period. If you have a week-long waiting period, then the benefits accrue starting the eighth day; from then on, the plan typically pays once a month. For the most part, the plan pays out 60-70% of a person’s normal taxable income.
Overall, short-term disability income insurance is simple; however, there are different short-term options available. As there are so many options out there, not only short-term options, it’s best to talk to an agent. An agent can determine which disability plan type is right for you.
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