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Let's talk about short-term disability insurance and why it's such an important employee benefit even though you are covered for on-the-job accidents through workers' compensation you are not protected from the off-the-job sicknesses or accidents short-term disability is an insurance plan that is designed to replace a portion of your paycheck if you are unable to work due to an off the job sickness or accident if you are unable to work then you are unable to collect a paycheck while your paycheck stops since you can't work your financial responsibilities don't you still have to pay for things like a car payment mortgage or rent bills and utilities and other insurance policies like medical insurance car insurance homeowners or renters insurance how about the medical bills due to your disability and if your pregnant new babies aren't cheap either the point is that you need money more than ever when a disability keeps you from being able to work that is what this insurance is for it protects your paycheck, and it's one of the most important insurance plans you can purchase examples of common short term disability claims might be back issues knee disorders accidents or surgeries that lay you off and sicknesses such as cancer strokes mental illness or heart attacks while you may consider a pregnancy to be an accident it's actually covered under short term disability as a sickness now let's talk about the fine points of how the coverage works the typical STD plan replaces up to 50 or 60% of your PRE disability earnings should you incur a disability while covered under this plan the process begins by filing a claim you provide information as well as your personal doctor and your employer the insurance company then reviews all the submitted documentation and upon approval of the claim paperwork the policy begins to pay you money with these types of plans the policy will begin payments to you after a certain number of days following the disability you will then be able to collect a certain number of weeks perhaps 13 weeks or 26 weeks depending upon your company's specific plan design there are some key details that you should also pay attention to that would be provided to you separately for instance whether the benefits received under the plan are considered taxable income or whether the plan has a pre-existing condition exclusion hopefully this brief overview of short term disability coverage helps you better understand this important employee benefit
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