Advantages of Short-Term Vs. Long-Term Plan


Short term disability insurance is most often a feature of a group insurance plan or employer-provided coverage. It is a benefit of working as a particular occupation or for certain employers, but it can also be obtained on an individual basis.

There are different variations for short term coverage, so it can be hard to define. It works like a long term plan, in that it protects your wages and offers benefits should you be injured or disabled. For group policies, this usually means there is a 7-14 day elimination period, followed by a 3-6 month benefits period. For individual policies, short-term disability insurance can cover up to 2-5 years.

Long-term plans tend to have extended waiting and benefits periods. The policyholders often choose to delay benefits for 3-6 months and in return their policy pays out for 5 or 10 years, or until the individual turns 65. Depending on the benefits you receive from your job, you should consult an agent to see what amount of coverage best suits your needs.

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