What Does Short-term Disability Insurance Mean?
Short-term disability insurance refers to a policy that covers a person who experiences an illness or an accident that prevents him or her from working and earning a wage during a period of time. The insurer's coverage provides money as replacement of income loss because of the disability. Short-term disability policies are meant or short-term issues where the insured is likely to return to health and to work. It is not meant or permanent or long term illnesses or injuries.
Insuranceopedia Explains Short-term Disability Insurance
A policy may be specific as to whether disability is brought about by either sickness, disease, or both, as the cause could determine coverage eligibility. In addition, the policy details the length of time the insurer will pay the insured while they are unable to work due to a disability. It also indicates the time when the insurer will start paying (e.g., the first day of a verified disability). Employers often offer their employees short-term disability insurance at a very low cost.