Short term disability insurance is a type of insurance that is intended to provide individuals with a source of income, in the event that they are temporarily disabled. Like long term disability insurance, short term disability insurance will cover a specified portion of an individual’s income while he/she is not able to work. However, this type or insurance will only cover a short term disability, and therefore, an individual will only continue to receive payments for a short duration of time.
When an individual is considering disability insurance, it is important that he/she carefully consider all of the features provided by each type of disability insurance. Though it may be slightly more affordable, for some individuals, short term disability insurance may not be adequate. It is also important to note that statistics indicated that roughly 30 percent of the populations will suffer from a disability prior to retirement. Therefore, short term disability insurance might be a smart investment.
The specifications and stipulations surrounding a short term disability insurance policy will vary significantly from one insurance company to another. Therefore, an individual should thoroughly research a number of different insurance companies before purchasing disability insurance. When an individual purchases short term disability insurance, he/she will make regular monthly payments to the insurance company.
In the event that he/she suffers from a short term disability, he/she will file a claim with his/her insurance provider, and begin receiving insurance payments. Generally this will cover between 40 and 60 percent of an individual’s normal salary. In many instances, an individual will only be permitted to receive a certain amount each month. These benefits may only last for a few months, or they may endure for two years, depending upon an individual’s insurance provider.