Temporary Disability Benefits
Definition - What does Temporary Disability Benefits mean?
Temporary disability benefits are insurance payments made to an employee who cannot work because of an injury or illness. The payments help compensate the employee for lost wages while they are unable to work. Temporary disability benefits typically last for up to a maximum of 26 weeks.
Insuranceopedia explains Temporary Disability Benefits
Besides short-term and temporary disability insurance plans, some government programs, such as worker’s compensation, provides temporary disability benefits. However, if an employee has a long-term disability or becomes disabled for life, they will eventually run out of temporary benefits. In this case, they would need to apply for permanent disability benefits. They could do so by either buying a long-term disability insurance policy while they were working or through a government program that provides these benefits, such as Social Security.
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