Long Term Disability
Insurance protects an employee from loss of income in the event they become sick or hurt typically for period of a couple of years or more. Estimates are a typical disability will last about 2.5 years. Policies can cover you for periods of as little as two years or up to age 65. Long term disability can be bought by both employers and individuals alike. A policy will pay somewhere between 50% and 70% of the persons pre-disability income.
Short Term Disability
Insurance is a form of sick pay that can last anywhere for 3 to 6 months. It is offered on a flat benefit basis such as $200 per week or $500 per week. This coverage is generally offered as part of an employer’s benefit package. It is not available as an individual coverage. It will generally have a one day waiting period for accidents and a 7 day waiting period for sickness. The waiting periods can be customized to some extent.
For Groups or Individuals
Disability coverages can be offered by your employer or association on a group basis. Long Term Disability can also be purchased as an individual. Short Term Disability coverage is generally only offered to groups.