Short Term Disability Benefits and Features

Short term disability benefits and features vary based upon the configuration of your insurance policy.  You can select the level of coverage that best suits your individual needs based up your monthly benefit, elimination period, and benefit period. 

These three short term disability benefit features help determine the insurance premium rate you might pay, and what you might expect to receive in the event you have a claim:

• Elimination period - how long before benefits begin
• Benefit period - how long the benefits last
• Benefit amount - the amount of monthly income that will be replaced
  

The short term disability benefit elimination period determines how quickly your benefit begins once you become disabled.  The shorter the elimination period, the higher your premium.

You can elect different elimination periods for accident coverage, and for sickness coverage.

The shortest elimination period available for sickness is 7 days.  Most women planning a pregnancy elect the shortest elimination period because they are planning to use the benefit.  The shorter elimination period maximizes your maternity leave pay for normal delivery.

• The benefit for vaginal delivery is 6 weeks - less the elimination period.
• The benefit for c-section delivery is 8 weeks - less the elimination period. 

Let's look at an example for maternity leave using the configuration noted above:

• A vaginal delivery pays out a net of 5 weeks (6 weeks - 1 week elimination period). 
  
  • Since there are 4.3 weeks in a month, your benefit would be $3,488.
• A c-section delivery pays out a net of 7 weeks (8 weeks - 1 week elimination period). 
  
  • Since there are 4.3 weeks in a month, your benefit would be $4,883.

Let's look at an example.  Let's say you earn $54,000 per year, grossing $4,500 per month.  Your deductions for taxes, etc is about $1,500 leaving you with $3,000 per month take home pay.

Short Term Disability Insurance will replace 2/3 of your gross, or $3,000 per month, equaling your take home pay.

The short term disability benefit period determines how long the policy will continue to pay benefits during your disability.  You can elect benefit periods of 3 months, 6 months, 12 months, and 24 months.

The longer the benefit period, the higher the premium cost.  Your premium will not double if you are choosing between a 12 month, and a 24 month benefit period.

Most women planning a pregnancy elect at least a 12 month benefit period.  The reason is simple: you may encounter difficulties very early in your pregnancy, and you want your coverage to last until you deliver. Would you want to choose between your income, and the health of you and your baby?