If you get sick or injured, depending upon where you work, you may have access to short-term disability insurance benefits—either through your major medical with your employer or through a supplemental benefits plan also through your employer.
The purpose of short-term disability is to replace your income until your long-term disability (if you have it) kicks in. Statistics show that most people are disabled for no longer than three to six months and payments can begin from the onset of an accident and usually within a week or two of an illness. Even if you only miss a week or two of work, you may qualify for benefits for that time period—in addition to benefits for possibly being out longer.
Great Value and Often No Underwriting Requirement
Short-term disability is usually very affordable and some companies, such as one of the ones I represent, allow you to receive up to several thousand dollars per month in benefits if you qualify with no underwriting.
Short-term disability is paid for with post-tax dollars, so the benefits you receive are not taxed.
If you are not familiar with your choices about short-term disability, the best way to learn about it is to contact your HR department or benefits representative if you work for a medium-to-large company; or if you work for a smaller company, the CFO or CEO can contact me to learn about the advantages of offering short-term disability for their company and their employees.
Several research reports show that offering short-term disability and other supplemental benefits creates improved employee loyalty and retention.
How to Determine How Much You Need per Month
The best way to determine the amount of short-term disability you might need is to calculate your monthly expenses and decide the amount of disability benefits you will need to cover those expenses. The purpose is to prevent credit card debt, selling assets, and/or borrowing against saving accounts—such as a 401k or IRA—to cover those expenses.
Avoid a Financial Crisis
Short-term disability insurance is a great way to prevent unexpected financial stress should you become injured or ill. All the actuarial research and statistics show the odds of becoming disabled even if only for a couple of weeks far outweigh the odds of dying. Most people think the opposite and very often buy too much life insurance and not nearly enough disability insurance.By Robert Remin
By Robert Remin