Short Term Disability

* Business Insurance - Disability Insurance

* Choosing Disability Insurance

* Long Term Disability Basics

Short term disability is a type of insurance that pays a percentage of an employee’s salary for a specified amount of time, if they are ill or injured, and cannot perform the duties of their job. Coverage usually starts anywhere from one to 14 days after your employee suffers a condition that leaves them unable to work. Many times, employees are required to use sick days before short term disability kicks in, if it’s an illness that keeps them out of work for an extended period of time. This is why there is usually a different policy for short term disability for sickness versus an injury.

Who Pays for Short Term Disability Coverage?

A short term disability policy can be an employer or employee paid benefit. Generally, though, short term disability coverage is employer-paid. Companies do have a choice of having employees pay for coverage, with certain tax implications.

Group coverage for short term disability can be attained in the following ways:

* Contract agreement through an insurer that covers disability.

* Through a self-funded plan set aside by the employer directly.

Coverage Terms

As an employer, you can create a policy dictating that employees use sick days before going on short term disability for an extended illness. You can also require documentation from a doctor to prove an illness or injury.

Different short term disability plans dictate different terms for qualifications. The main terms are listed below:

                * Employees need to work for the employer for a certain amount of time before coverage kicks in.

                * Employees need to work full-time, usually 30 hours or more a week.

Benefits

                * Percentage of weekly salary paid out (typically between 50% - 70% of weekly salary).

                * Duration of short term disability benefits (typically between 10 to 26 weeks).

                * Maximum amount of time covered under this disability program.

It’s also important to know the rules of the states where you have employees. While short term disability is not a requirement in most places, some states such as Hawaii, New Jersey, New York and Rhode Island mandate that short term disability benefits are provided for up to 26 weeks.

Additional Insurance Resources

* Worried About a Job Loss? Take Action Now to Replace Your Insurance Coverage

* Disability Insurance Frequently Asked Questions

* Short-Term Health Insurance

The benefit amount allocated to you will be based on the type of policy you have opted to buy, and a few other factors, including your level of disability (partial or otherwise). As long as you are under a doctor’s care, and are advised not to go back to work, your benefits will continue according to the specified terms of your policy.

Short term disability insurance covers various situations. In 2008, a study was conducted in order to examine the main reasons for using short term disability insurance. It was reported that pregnancy accounted for 21 percent, injuries for 10 percent, digestive/intestinal diseases for 7 percent, and back injuries for 6 percent.

How to get Short Term Disability Insurance

Your employer may offer you disability insurance as part of your benefits package, or optional insurance for which you would be responsible for paying the premiums. You can also purchase an individual short term disability insurance policy, which will cover you up to two years, as would the one offered by an employer. However, it is recommended that you purchase the coverage through your workplace, if possible, as an individual policy is subject to the state of your health. Moreover, it is more expensive, in most cases.

If you have further query feel free to contact Canada Insurance Plan