While many companies offer different types of disability insurance, you can’t always find affordable short term disability insurance. And considering how many injuries happen both during work and outside it, it’s definitely something almost everyone, if not everyone, should include in their life.
Workers’ compensation is not enough
Why does everyone need affordable short term disability insurance? Doesn’t workers’ compensation provide coverage if an injury happens? Well, not always.
If you are injured on the job, workers’ compensation will typically cover all medical bills related to your injury and provide a certain amount of income during the time you’re unable to work. However, if your injury happened outside of work while performing non-work related activities, workers’ compensation won’t do the trick.
In these cases, short term or long term disability insurance is the only solution you can turn to.
What does affordable short term disability insurance cover?
If you’re suffering from a particular chronic illness, have an accident, or sustain a non-work-related injury that will prevent you from working for several months, you will lose your ability to produce an income. Short term disability insurance provides coverage to compensate for the amount of income lost for the duration of the disability.
The amount you would receive is typically up to 70% of the base monthly salary for three to six months, the expected duration of short term disabilities. All short term disability insurance plans have different elimination and benefit periods.
Which states have mandatory short term disability insurance?
While many employers give the option of choosing between employer-sponsored short-term disability coverage and a private policy, some US states mandate employers to provide short-term disability insurance to their full-time employees.
This means that if you work full-time in the states of New York, New Jersey, California, Hawaii, Rhode Island, and Massachusetts, and Connecticut from recently, you will have pretty affordable coverage. In fact, employer-sponsored insurance is one of the most affordable short term disability insurance models out there.
Final Thoughts – is short term disability insurance worth it?
Affordable short term disability insurance can bring peace of mind to your life other insurance types can’t, and often for a fraction of their cost. Your livelihood will be protected if you sustain an injury that will deem you unable to work for a certain period without you having to sacrifice your life savings.