Michigan short-term disability insurance is of paramount importance to growing families. Many have very little room for financial mishaps. There may be a mortgage payment for the new or bigger house, a car note for the new minivan, plus credit card debt for decorating the baby room, a new crib, diapers, formula, child care, and other costs.
Lost income from an accident or illness does not help when expenses are growing. Learn how short tem disability insurance works in Michigan.
- Application forms and benefit amounts
- Qualifying medical conditions
- Related Michigan laws
In order to become a policyholder and be eligible to file a claim you must first complete a policy application form. A licensed agent will record answers to questions about annual income, and medical history, and submit the application to the issuing company.
Applying for short-term disability benefits requires the filing of a claims form. Download the claims form from the issuing company’s website. Complete the section about personal information, have your doctor certify the medical reason for the claim, and your employer certify that you are not working and earning an income.
MI Short Term Disability Benefits
MI does have state mandated benefits. An individual short-term disability policy in Michigan provides income replacement for policyholders who are unable to perform the primary duties of their full-time occupation due to a covered accident or illness. That long sentence is unpacked to provide a simpler explanation of each component: income replacement benefits, disability definition, and qualifying medical conditions.
Income Replacement Benefits
Short-term disability income replacement benefits are defined using three terms: monthly amount, elimination period, and payment duration. Your policy can replace up to 2/3 of your income or $5,000 per month – whichever is less. Benefits may last up to 24 months if you remain incapacitated that long. You can select from of range of elimination periods to optimize the benefits received and premiums paid.
Benefits are paid directly to the insured unless they specify otherwise. Benefits are paid in addition to other insurance you may have with other insurance companies, and are guaranteed renewable, and portable. This means that your policy will be there when needed.
Get personal quotes for programs covering normal pregnancy, and those more conveniently purchased directly as an individual. See how the premium costs for policies that create maternity income compare to the payments made for normal childbirth. See why the extra steps are worth the effort.
The policyholder is considered totally disabled if he or she is unable to perform the material and substantial duties of their full-time job. These duties are those which you are normally required to perform and can’t be modified or omitted. Performing your job at a particular worksite or building is not a material duty of your job.
Disabilities that occur while unemployed may be covered if the policyholder is confined to home and unable to perform two or more activities of daily living.
Qualifying Medical Conditions
Michigan short-term disability insurance can protect your income in case of accidents and illnesses that may cause you to lose earnings. You rely on these future earnings when you borrowed money for the house, car, and other everyday needs. When these bills come due, wouldn’t it be nice to have the cash to make the payments – even when you are unable to work?
Accidents and Illnesses
A covered accident is one which occurs after the policy effective date and is not otherwise excluded by the policy. Commonly excluded accidents are those self-inflicted, which occur while intoxicated or while committing a crime, while engaged in military combat, or during a professional sporting activity.
On the job accidents are most commonly covered by workers compensation. You may have the option to include coverage for on the job accidents at 50% of the monthly benefit.
Covered sicknesses include a disease, infection or illness not caused by an accident which occurs after the policy effective date, while the policy is in force. Complications of pregnancy and recovery from normal childbirth are the most common claims reasons for short-term disability insurance in Michigan.
Pregnancy Bed Rest
Short-term disability for pregnancy bed rest is very common claims reason. Pregnancy complications requiring bed rest is a qualifying medical condition when a doctor certifies the medical reason behind the bed rest, and the policy coverage begins prior to conception.
Recovery from normal childbirth is also a qualifying medical condition for policies purchased as an employee benefit program. Employees pay the premium themselves so it is affordable for employers to offer to employees. The policies make a six week benefit payment for vaginal delivery, and an eight week payment for c-section birth.
Michigan Related Laws
Michigan does not have state laws mandating short-term disability benefits. There is no state short-term disability program in Michigan. Employers who offer the programs do so voluntarily. Employees with coverage also volunteered to participate.
Alternative Income Replacement
Michigan State Disability Assistance (SDA) provides cash assistance to disabled adults to help them pay for living expenses. To qualify you must:
- Receive other disability benefits
- Reside in a special facility
- Be unable to work for at least 90 days
The Disability Determination Service offices in MI administer Social Security benefits. This federally funded program provides benefits to people with severe conditions expected to last at least one year or more, or result in death. Offices are located in Detroit, Lansing, Kalamazoo, and Traverse City.
Workers compensation is another state mandated program designed to provide both income support and help in paying for medical care. It covers only off job illnesses and accidents. Most conditions that translate into lost earnings occur off the job.
Job Protected Leave
Michigan job protected leave laws regulating private workers consist only of federal rules. There are no state level family leave laws to supplement the national legislation. With limited job protection safeguards, your employer may not need to hold your job open. Once you are physically able to work, unemployment benefits may be an option.
Michigan State Employees
Michigan State employees are entitled to up to 26 week of job-protected unpaid leave for parental care.
State police in Michigan are covered under a group short-term disability program. Long term disability benefits are available to all state employees.