What Does Short-term Disability Mean?
A short-term disability is an illness or an injury that prevents a person from working entirely or at full capacity for a period of time that is usually six months or less. Short-term disability insurance provides financial protection for lost wages in the event the insured incurs a short-term disability.
Insuranceopedia Explains Short-term Disability
Although a short-term disability may not be life-threatening, it can still represent a serious financial hazard. For this reason, many people choose to purchase short-term disability insurance. Note that this is not the same as workers' compensation insurance, which employers provide. For the latter to kick in, the injury must have occurred at work, while the former is purchased privately and would cover lost wages due to a disability, regardless of where it took place.