Employees who experience an unforeseen illness or injury are covered by disability insurance. These insurance give benefits when a mental or physical disability prohibits people from working for a prolonged period, with payments available for either the short or long term. Short-term disability insurance (STD) often covers pregnancy recovery, surgery, or a temporary injury or illness. Long-term disability insurance, on the other hand, pays a monthly benefit if you become disabled and cannot work for an extended length of time. To learn more about SSDI benefits and conditions that qualify for LTD, talk to a disability attorney today.
Short-term disability vs. long-term disability
STD and LTD insurance is commonly offered as part of your employment benefits package, but you can also buy them straight from the insurance company. Although you are not required to have both forms of coverage with the same insurer, this setup can make the transition from short-term to long-term coverage easier.
Short-term disability coverage usually begins after you have lost your ability to work for a particular period. The specific length will depend on the policy terms, although it is usually one or two weeks, and coverage often lasts three to six months. Short-term disability insurance can also cover the time between waiting for long-term disability benefits and receiving them.
Long-term disability insurance, on the contrary, demands you to be disabled for between 90 and 180 days before you may receive payments that can extend for years or until you reach retirement age. If you obtain the maximum short-term disability benefit duration under your policy, you may have to transition to long-term disability benefits.
Difference between STD and LTD disability definitions
Although STD and LTD policies generally provide comparable benefits, some differences may exist. The key difference between the two policies is how they define a qualifying disability.
Many short-term disability policies require you to be unable to carry out your work tasks, known as the “own occupation” standard. Furthermore, STD insurance frequently demands you get treatment throughout your disability to reduce your dependency on benefits.
In contrast, the notion of long-term disability can be applied to your profession or any type of job at all. To continue getting benefits after a particular period, you must be incapable of performing any job duties. After 24 to 48 months, LTD insurance often converts from “own occupation” to “any occupation.”
An experienced disability lawyer could tell you more and help answer any questions you may have, so schedule an appointment today.