Long Term vs. Short Term Disability

Probability and insurance history indicate that one out of every four workers will experience a long term disability during their lives. Any disability that leaves you unable to work can result in a disability claim through your insurance. When filing a disability claim, you may hear both the terms short term disability and long term disability. You may wonder what the difference between the two might be. There are several differences:

1. Long term disability insurance kicks in after short term disability runs out. There is no overlap in coverage. Short term disability insurance covers you for a short period of time and only that short period of time. If you go back to work within the short term claim period, the coverage changes or stops. But if you exceed the time period allowed or short term coverage, your long term policy will then kick in.
2. Short term disability insurance is only available through your employer; you cannot purchase it on your own. You can purchase long term disability insurance on your own. Some larger companies do offer long term disability options to employees.  It is our recommendation that if you are interested in purchasing a long term policy and your employer does offer the coverage that you purchase through them for a better premium cost considering number 3…
3. Long term disability insurance usually has a higher premium than short term disability insurance. The reason is due to the usually extended coverage period and customization. You can usually adjust your long term policy to fit your needs while a short term policy is more standardized.

For more information on the differences between short term disability insurance and long term disability insurance, please feel free to give us a call or fill out the form on this page. We would be happy to give you a quote on a policy of your own.

Photo by Tony Crider