What Is Short Term Disability Insurance And What Does The Insurance Provide

Short term disability insurance is a benefit that has proven to be important to people who have to take time off of work that would normally go unpaid. This insurance will cover living expenses and pay for lost time at work while a worker is at home. It gives them the peace of mind that they need to recover or take care of their affairs without having to worry about getting back to work quickly.

This benefit is not included with medical or other disability insurances, and will be offered separately from those. If made available by an employer, they will be able to provide a price quote and offer it as a separate cost. Monthly premiums will need to be paid, and there will be an elimination period before a worker can file a claim to receive benefits. Workers will not be able to purchase these benefits immediately before they are required. Workers will have to sign up and obtain these benefits in advance to ensure that they will be eligible to use them when necessary. When a worker is not able to work, this insurance will provide them with a portion of their wages. This is typically 2/3 of what they normally receive or $5,000 - whichever is lower.

Short term disability insurance can be utilized for something such as an illness that will put a person out of work for a week. There is usually a limit to the amount of paid sick days that a worker can use from his or her job. If they come down with an illness then they can use this type of insurance to cover the lost pay for the remainder of their stay out of work. In the case of an illness, the elimination period is often as short as 7 days.

A type of insurance like this can help a person who is getting infertility treatment because he or she may face extra time off of work. Many employers do not cover this type of treatment which is often risky and can result in more time off needed for work to care for the pregnancy and recover from the childbirth. The short term disability insurance will help those who need some additional time off after the delivery. Some insurance companies will provide infertility insurance as an add-on to a regular health insurance policy available through an employer. Infertility insurance covers the extra costs related to high risk pregnancy and delivery that families usually have to pay out of pocket.

Maternity health insurance is also not offered by most employers and health insurance companies. Health insurance companies often lose money over maternity health insurance which can make the rates extremely high. With the average lowest price of a pregnancy ranging around $7,000, having maternity health insurance for a growing family can be extremely useful. This type of insurance will cover all of the prenatal care as well as the delivery of the baby. Many employers will not pay a parent when they take time off for maternity leave and short term disability insurance can help take some of the stress off of the family's finances.

Short term disability insurance gives employees the security they need when something comes up that needs them to take an extended period of time off of work. Many different plans and options to help financially are available whether they are out for an injury or sickness, or if they need extra time after the birth of a child.