Insurance Library

Disability > Basics

According to the American Council of Life Insurers, nearly one-third of all Americans will suffer a serious disability between the ages of 35 and 65. Knowing this, it becomes apparent that a plan in case of an injury or illness is necessary for everyone. Whether it is personal savings or insurance, something is needed to protect you.

Short-term disability insurance is the insurance option for protection if you can't work. Your policy will pay a percentage of your salary for a short term, typically 13 to 26 weeks. The percentage paid is usually 50, 60, or 67 percent of your weekly salary.

You will begin receiving payments from your short-term disability policy anywhere from 1 to 14 days after you're injured or become sick. If you are injured, you will start receiving payments immediately, while sickness may take longer due to having to demonstrate that the illness is serious enough to be considered a disability.

If your savings are large enough to last you until you can return to work, you probably don't need to worry about short-term disability coverage. But, if you do not have much saved, you may want to consider coverage you can count on if you are injured, or fall ill.

Individual short-term disability policies are available but difficult to find, and quite expensive.