What Is the Difference Between Short-Term & Long-Term Disability?
Open enrollment for company benefits is on the horizon. Now is the time to think about your insurance coverage, retirement plans, and disability coverage. It is common for employers to offer short-term disability coverage for employees.
To extend disability coverage, employees can elect long-term disability at a cost.
Too often, employees do not understand the importance of long-term disability until they need it. If you experience an illness or traumatic event that prevents you from working, things can get confusing.
Are you wondering what the difference between disability coverage is? Keep reading to learn more about having the right policy.
Short-term Disability vs. Long-term Disability
When it comes to disability insurance, you must understand the difference between the two. One of the biggest factors is the two insurance coverages don’t overlap. To apply for long-term disability, you must first exhaust the short-term disability.
STD Insurance
Short-term disability (STD) insurance kicks in following a major illness or accident. Your medical care provider determines if and when you’re able to return to work. The base test is whether you can return to work and perform your assigned tasks.
Individuals can apply for Employment Insurance (EI) Benefits if there is a waiting period before benefits start, or if they don’t have STD coverage and need to bridge the gap before LTD goes into effect.
LTD Insurance
Long-term disability (LTD) mirrors STD in terms of eligibility. You must have a medical diagnosis that prevents you from returning to your regular position. Some providers may require that an employee on disability accept a position with similar training and education.
In both instances, an employee who is denied benefits can appeal the ruling. For an appeal, you’ll want to look into finding a short-term disability lawyer or long-term disability lawyer, whichever applies to your circumstances.
Waiting Periods
Both STD and LTD policies come with a waiting period. These waits can vary depending on the policy, insurer, and location. Check your statement of benefits and contact the benefits administrator for your plan.
How Much You Will Receive?
Disability insurance is meant to supplement your income while you’re recuperating. The amount you’ll receive can range from 30% to 100% of your base pay. The calculated payout is based on your plan and formula.
For example, STD is based on 50% to 100% of your weekly earnings. In comparison, LTD is based on 30% to 70% of monthly earnings.
What if You’re Denied?
People are denied benefits all the time. Contact a short-term disability lawyer or a long-term disability lawyer to review the denial if it happens to you.
Personal Injury Lawyers can explain the denial and make sure an appeal is filed on time and also understand disability laws and terminology.
Looking For a Short-Term or Long-Term Disability Lawyer?
Virk Personal Injury Law is experienced with handling both short-term and long-term disability claims. Our team can help you fill out applications and appeal denials to ensure you receive the premiums you deserve.
Click here to book your free consultation today!