A. We will explain short term disability insurance first.
Short-term disability insurance kicks in to cover part of your income for a short period of time, typically up to six months, while you recover from a non-job-related illness or injury. (If you get injured on the job, you’d probably receive workers compensation, too.)
Some companies offer short-term disability insurance as an employee benefit. These policies might cover you as you recover from surgery or if you face an illness requiring hospitalization or frequent treatment.
Some group policies include a maternity benefit, which will pay out for a certain number of weeks after you give birth, but most individual policies don’t, unless you are disabled. Your plan should clearly explain what’s covered and what isn’t.
If you’re self-employed or own your own business, consider purchasing your own short-term disability coverage. These policies are generally inexpensive because they often only need to cover a few months.
If you’re not a good saver, you probably need to have short-term disability in place because a short-term policy can help you keep up with your bills without cleaning out your savings.
In next blogpost, we will discuss what is long term disability insurance.