When life throws you a curveball, and you find yourself unable to work due to an illness or injury, short-term disability insurance can be a lifesaver. In this article, we’ll break down what short-term disability insurance is, the differences between short- and long-term disability insurance, and how applying for short-term disability benefits is often the first step in applying for long-term disability insurance.
What Is Short-Term Disability Insurance?
Short-term disability insurance is a type of insurance policy that provides financial assistance to people who are temporarily unable to work due to an illness, injury, or pregnancy. This coverage can help replace a portion of your income while you recover, so you can focus on getting better without worrying about bills.
Short-term disability insurance policies typically provide benefits for a limited time, usually between three and six months, although some policies can last up to a year. Benefits usually begin after a waiting period, which can be as short as a week or as long as a month, depending on the policy.
Short-Term vs. Long-Term Disability Insurance
There are two main types of disability insurance: short-term and long-term. While both provide financial assistance to people who are unable to work due to illness or injury, they differ in several ways:
- Duration of Benefits: Short-term disability insurance provides coverage for a limited period of time, usually between three to six months, while long-term disability insurance provides benefits for a longer period of time, potentially lasting years or even until retirement age.
- Waiting Period: The waiting period for short-term disability insurance is usually shorter than for long-term disability insurance. Short-term disability insurance typically has a waiting period of one week to one month, while long-term disability insurance typically has a waiting period of 90 days or more.
- Benefit Amount: Short-term disability insurance typically replaces a higher percentage of your income than long-term disability insurance. Short-term disability insurance can replace up to 60-80% of your pre-disability income, while long-term disability insurance typically replaces 50-70% of your pre-disability income.
- Cost: Short-term disability insurance is generally less expensive than long-term disability insurance. This is because short-term disability claims are typically less costly to the insurer because the policyholder is expected to return to work in a shorter period of time.
How Short-Term Disability Claims Compare to Long-Term Disability Claims
In many cases, filing a claim for short-term disability benefits is the first step in the long-term disability insurance claim process. If you become unable to work due to an illness or injury, you’ll likely start by filing a short-term disability claim with your insurance company. This will provide you with financial support during the early stages of your recovery.
If your condition doesn’t improve and you remain unable to work after your short-term disability benefits have ended, you may need to file a long-term disability insurance claim. The process for filing a long-term disability claim is generally more complex and may require additional documentation to prove that your disability is expected to last longer.
Filing a short-term disability claim can also serve as important evidence when applying for long-term disability benefits. When you file a short-term disability claim, you provide documentation about your illness or injury, your treatment plan, and your inability to work. This information can be used to support your long-term disability claim, potentially making it easier to receive benefits.
Short-term disability insurance is a valuable financial safety net that can provide temporary support if you’re unable to work due to an illness or injury. Understanding the differences between short-term and long-term disability insurance and how they relate to each other is essential to making informed decisions about your financial protection.
By filing a short-term disability application, you’re taking the first step in the long-term disability claim process and ensuring that you have the necessary documentation and evidence to support your claim if your condition persists. As you navigate life’s uncertainties, having the right insurance coverage can provide peace of mind and financial security, allowing you to focus on recovery and getting back on your feet.
Was Your Short-Term Disability Claim Denied?
If your claim has been denied, we can help you understand your rights and options by reviewing the language of your disability policy and the details of your unique case. Call the Ortiz Law Firm today at (888) 321-8131 to schedule your free, no obligation case evaluation.