If you’ve looked into protecting your income with disability insurance, you’ve probably come across two main types: short-term and long-term coverage. But how do you know which one is right for you — or whether you need both?
Let’s break it down.
Short-Term Disability Insurance (STD)
What it covers:
Short-term disability provides income replacement for temporary injuries or illnesses that prevent you from working — typically for a period of weeks or a few months.
Typical benefit period:
Up to 3–6 months
Common uses:
- Recovering from surgery
- Back or neck injury
- Pregnancy and childbirth recovery
- Minor but disabling illnesses or accidents
When benefits begin:
Often after a waiting period of 7–14 days
Why it matters:
STD helps cover your immediate expenses — like rent or mortgage, utilities, and groceries — during a short recovery window.
Real-World Example:
Imagine a marketing executive who needs emergency surgery and will be out of work for two months. Without STD coverage, they’d have to rely on savings or unpaid leave. With it, they continue receiving a portion of their paycheck, ensuring financial stability during recovery.
Long-Term Disability Insurance (LTD)
What it covers:
LTD kicks in when a serious illness or injury keeps you out of work for an extended period — often months or even years.
Typical benefit period:
Anywhere from 2 years to retirement age
Common uses:
- Cancer treatment
- Serious accidents
- Chronic illness
- Mental health conditions requiring long-term care
When benefits begin:
Usually after a 90-day elimination period (once STD benefits end)
Why it matters:
LTD provides ongoing income replacement so you can continue paying bills and supporting your family for as long as your condition prevents you from working.
Stat to Consider:
According to the Council for Disability Awareness, nearly 1 in 4 workers will experience a disability lasting 90 days or longer at some point in their career. LTD ensures they’re financially protected when that happens.
Which One Do You Need?
For most professionals, the answer is both.
The Employer vs. Individual Factor:
Many employers offer short-term disability, but long-term coverage may be optional or limited. It’s important to review your workplace benefits — and consider whether an individual policy is needed for full protection.
Common Misconception:
Many people assume disabilities only stem from serious accidents. In reality, chronic illnesses like cancer, heart disease, or even mental health conditions are among the top causes of disability claims.
✅ Pro Tip for Employers:
Offering both STD and LTD through a group plan is a cost-effective way to protect your employees — and your business — from unexpected financial strain.
Protecting your ability to earn a living is one of the smartest financial decisions you can make. Choosing the right type — or combination — of disability insurance ensures you’re covered, no matter what life throws your way.
Need help evaluating your coverage?
Contact our team at Professional Insurance Programs. We can help determine if your current plan is sufficient or if supplemental coverage makes sense for your long-term financial security.
800-637-4676
info@profinsprog.com
www.insuranceformembers.com