Long Term vs Short Term Disability Insurance

While long term and short term disability insurance are similar in some aspects, they are completely different in others. Depending on your personal information, your lifestyle and what you’re interested in, you will benefit more from one type of disability insurance.

Some of the main things short term and long term disability insurance are different in are the following:

The provider

First and foremost, what long term and short term disability insurance are most different in is the provider or the source through which the person gets the insurance. Short term disability insurance is most often offered as a benefit from the employer through group insurance policies, while long term disability insurance is usually bought individually to provide additional coverage or completely separate from the employer.

The duration

What separates short term from long term disability insurance is the duration of the benefits. Short term disability insurance covers injuries lasting anywhere from 3 to 6 months, after which the long term disability benefits pick up and last for the whole duration of the disability.

The coverage

The final difference in the short term and long term disability insurance is the coverage amount you would potentially receive if your policy is activated. The monthly payments you’d receive are usually stated as a percentage of your salary, and in short term disability insurance, they are usually around 70% of your salary, while for long term disabilities, they are usually around 60% of your monthly salary. This would be in reference to group long term and group short-term disability insurance and percentage depends on the specific plan the employer is offering.  Individual disability insurance plans are not based on a percentage but certain parameters that are purchased and definitions exist in the individual disability insurance policy tailored for that specific individual.

Visit here for more about Long Term Disability Insurance Rates