Disability Insurance

5 Things to Know About Short Term Disability Insurance

If you’ve decided to get short-term disability insurance, that’s fantastic. It’ll be one of the best decisions you ever made for you and your family.

Short-term disability insurance can be a godsend in the future if you get seriously ill or injured. Without it, you may not be able to pay the bills or take care of your family.

Keep in mind that it’ll only cover you long enough for you to get back on your feet because it is short-term. One example of a scenario is if you’re a pilot who has to get surgery and should recover in six months.

You can get short-term disability insurance through your employer or through a private insurer.

Now that you’ve decided to proceed, here are some things to keep in mind:

1. It Pays Around 60% of Lost Wages

If you qualify for short-term disability benefits, the insurance company should cover 60% of your income.

Look over your policy before signing on the dotted line. Some companies offer as low as 40%, whereas others offer 70% reimbursement. If you have any questions, clear them up before committing to the policy.

2. Pre-Existing Conditions Don’t Count

If there’s a pre-existing condition you have, short-term disability insurance won’t cover it. So, if you were already sick or had a broken leg before signing up, you can’t use your disability benefits.

You may be signing up because you think a health condition is getting worse. Unfortunately, unless it’s a new diagnosis, your insurance won’t make up for any lost wages.

That’s not to say you still shouldn’t get it, though. It’s always a good idea to have short-term disability insurance. If you have an accident or another health event in the future, being able to claim your benefits will be a relief.

3. Mental Health Issues Usually Are Covered

You may struggle with depression from time to time which makes it impossible to work. The good news is short term disability insurance can help. If it covers mental illness, it’ll provide financial support while you get treatment.

When taking time off work for a mental health condition, it’ll be helpful if you’re talking to a psychiatrist. There should be ways to back up the health issues you’re going through (whether physical or mental).

While it’s a relief that many policies cover mental illness, not every company does. Read through everything thoroughly to see if the insurance company includes mental illness. If it does, then you’ll be covered if you end up going through a depressive episode in the future.

4. You Get Paid Every Few Weeks

Say you get approved for short-term disability insurance after getting injured. How often do you get paid, and how will it work?

Every company does things differently, but usually, you get paid every couple of weeks. It’s like a paycheck, so you don’t have to wait months until receiving payment.

Keep in mind that the schedule will likely be different from the current paycheck schedule you’re used to. The company will dictate how and when you get paid. To understand the specific details, find out what they are from the start.

5. You’ll Need a Physician to Sign Off on a Claim Form

If you do end up filing a claim in the future, you’ll need a physician to sign off on the form. The reason why you need a signature is so they can back up your claims. They can confirm that your injury or illness is making it so you can no longer work.

After submitting the claim, your insurance company will need medical records to review. Everything should be consistent with what you would fill out on the form.

It’s not a fun process having to compile everything, especially when it comes to your health. Yet, if it means receiving benefits, it’s worth the time and effort.


You should now know more about short-term disability insurance. That is a good thing because you should have fewer questions!

Don’t be afraid to ask the insurance company you go with more questions, though. The company must be transparent with you before starting the policy.

There’s no doubt about it, though. Short-term disability insurance is something you should have.

With it, you’ll feel at ease knowing if you get sick or injured, you’d have some financial support.

About Ambika Taylor

Myself Ambika Taylor. I am admin of https://hammburg.com/. For any business query, you can contact me at [email protected]