What are Short-term and Long-term Disabilityand How Do I know if I Qualify?

Submitted by: Stephanie Rasmussen, Disability Benefit Specialist 

Short-term and Long-term disability are income insurances intended to replace a significant portion of your earned income through periodic payments while you are disabled either from sickness or injury. These benefits provide either monthly or weekly payments of a specified amount during a period of disability.

There are two types of disability insurance benefits.

• Short-term Disability covers a portion of your income for a short period of time, typically from three to six months following a disability. The specific time period and percentage of replaced income vary by policy.

• Long-term Disability coverage typically begins after you have been disabled and unable to work for at least six months. It can extend for a specified number of years or until you retire or reach the age of 65, depending on the policy.

Some points to check are:

• What is the policies definition of disability? Does it cover both injury and sickness? Is it for partial or total disability? Is it defined as inability to perform your current occupation or as inability to perform any occupation of which you are capable?

• When does coverage begin? Is it different for injury and sickness?

• How long will benefits be paid? What is the weekly or monthly benefit?

• How much of your income will be replaced?

• Will it automatically renew or continue?

Disability insurance income policies may specify that income benefits will not be paid to a disabled person if the disability results from certain causes. Check the policy for any exclusions or limitations that might apply. If you have any questions, ask your human resources department.