What is the difference between long term disability and short term disability benefits?
Disability is considered by some experts to be the most important policy under the umbrella of insurance. When considering an injury or health condition that will take one away from their job, people become concerned with health insurance. However, health insurance only covers the medical portion of the tragedy. Disability insurance exists to protect and replace partial future wages in the event that one will become physically or mentally unable to work.
Short-term disability (STD) replaces a portion of an employee’s salary if a physician- documented injury or disability will prevent the policy owner from working. Most policies will cover 50% – 70% of wages. The policy generally begins after sick leave is exhausted and will go into effect for 10-26 weeks. Those who utilize STD will typically have injuries or conditions that are quickly treatable and have short recovery times, such as broken bones or simple surgical procedures.
Unlike STD, Long-term disability (LTD) does not go into effect until 90 days after the individual has been out of work, and in some cases 180 days depending on the insurance. Although it takes longer to kick in, LTD has a much longer lifespan than STD. Some will remain in effect until recovery or until the individual is able to learn a skill which will not be detrimental to their condition or any procedures that they had done. In fact, some plans will extend until the age of retirement. Similar to STD, LTD will usually cover between 50% and 70% of earnings, however some employers allow employees to purchase extra, which would allow the policy to cover 80% of wages.
If you have become injured or disabled, and are unable to work or complete normal daily routines, it may become difficult to pay bills and other expenses. Fortunately, the skilled long term disability lawyers at Burke, Harvey & Frankowski, LLC are ready to fight for the benefits you are entitled to. The LTD attorneys understand the importance of obtaining these benefits and work tirelessly to help disabled clients across the United States navigate through the sea of claims and appeals forms as efficiently as possible.