How Short-Term Disability Insurance Works

Many parents are confused about how short-term disability insurance works, and for good reason. The topic is confusing.

In addition, each person will have a very different experience based on timing and where they work.

Do not assume that you automatically have coverage as with Social Security disability – which does not cover temporary medical conditions.

Short-Term Disability Subtopics

Sponsored Listing

Articles on this Topic

Maginifying glass enlarging dollar bills and coins

Short-Term Disability Insurance Quotes [Compare Online]

Get quotes and rates to find out what the monthly premium might cost. Premiums vary based upon the policy features you select: elimination period, benefit period, and monthly benefit amount. Your age, the state where you work, and the industry of your employer also factor into the equation.

Find alternatives sources of help if you are currently disabled or have an existing health condition.

Red sign reading "fired"

Not Returning to Work After a Short-Term Disability Absence

What happens if you are not returning to work after a short-term disability absence? Some people lose their job at the most inconvenient time, while others decide to quit and control events’ scheduling.

Whether you quit or get laid off, you may need to know what happens to your benefits and where to find the money to continue with your health insurance premiums since you may still need a doctor.

One orange goldfish facing five blue goldfish

Individual Short-Term Disability Not Through Employers

There are several types of individual disability insurance. One type is in very high demand and exists in an unlikely form.

Personal policies covering normal childbirth are very attractive, and can be purchased when offered at the worksite. Private plans sold directly offer convenience. Discover the type most suited to your needs
Pink piggy banks squeezed by two blue piggy banks

Short-Term Disability Insurance Premium Cost Per Month

Many site visitors would like a quick overview of what short-term disability costs, without requesting a detailed quote.

In addition, knowing the monthly premium costs is of little value without a comparison to possible benefit payments. Women purchasing policies to cover maternity leave find this type of comparison most valuable.

Women opening case with surprized looks

Should I Get Supplemental Short-Term Disability Insurance?

Supplemental disability insurance fills gaps in many existing policy types. Buying an additional policy often makes sense.

Long-term policies often have extended elimination periods. Group plans often have limited monthly benefit amounts. State disability exists in only five states. Social security disability does not cover temporary conditions.

Government building reflected in water

Federal Government Employee Short-Term Disability Insurance

The federal government does not provide disability insurance employee benefits.

There are generous and flexible sick leave policies, but newer workers may not have a sufficient number of banked days. Many disability companies market policies to federal government employees that workers can pay using a third party administrator.

Paid maternity leave does exist for federal workers.
Dog dressed as postal worker next to mailbox

Short-Term Disability Insurance for USPS Postal Employees

Postal employees find it difficult to get short-term disability because the USPS does not offer the benefit.

Insurance companies avoid covering people working in high-risk occupations with repetitive tasks. Fortunately, several companies serve this market through group plans issued through unions and the federal government.

They prefer to pool risks rather than deal with individuals.

Two self-employed tailors

Short-Term Disability Insurance for Self Employed Workers

Many self-employed workers seek out individual disability insurance in the belief that they have only one option. Policies purchased directly have limitations compared to those purchased through employer groups.

Sometimes the self-employed have employees of his or her own, or work as an independent contractor with a larger entity. Explore all options.

IRS Tax Form 1040

Are Short-Term Disability Benefit Payments Income Taxable?

Disability insurance replaces a portion of income when the policyholder is unable to work. When policyholders are disabled, they often have extra medical expenses. A reduction in income could hurt.

Sometimes the recipient receives the benefit tax free, other times the amount is taxable. When the benefit comes tax free, the net amount is often close to regular earnings.

$100 dollar bill as lawn chair fabric

Short-Term Disability Pay Calculator | How Much You Get

Another common question that people ask after learning they may be unable to work is how much does short-term disability insurance pay in the event of a valid claim.

The answer depends on the monthly benefit amount listed in your policy along with several other features you select at enrollment time.