Short-term Disability

What Does Short-term Disability Mean?

A short-term disability is an illness or injury that prevents a person from working fully or entirely for a period typically lasting six months or less. Short-term disability insurance offers financial protection by covering lost wages in the event that the insured experiences a short-term disability.

Insuranceopedia Explains Short-term Disability

Although a short-term disability may not be life-threatening, it can still pose a significant financial risk. For this reason, many individuals opt to purchase short-term disability insurance. It’s important to note that this type of insurance is distinct from workers’ compensation insurance, which is provided by employers. Workers’ compensation covers injuries that occur at work, while short-term disability insurance is purchased privately and covers lost wages due to a disability, regardless of where it occurs.

Some employers offer group short-term disability policies as a workplace benefit, but coverage amounts and waiting periods vary. For a fuller breakdown of how disability insurance works and whether you need it, the distinction between short-term and long-term policies is worth understanding before you buy.