Short-Term vs Long-Term Disability Insurance

It is not surprising that many consumers believeleave from work can be considered short term in
that long term disability insurance is the only typenature. Worker's compensation is also another
of insurance available. Long term is by far theform of short term insurance. In fact, worker's
most common type purchased by consumers ascompensation may be the most well-known type
well as the most common type offered byof this type of insurance. Most employers are
employers and membership organizations.required to provide worker's compensation
However, there are short term disability insurancebenefits that replace a portion of your income if
polices on the market and they can be usefulyou are unable to work, due to an accident that
when needed. This article examines some of theoccurs in the workplace or while on company
more common aspects between the two typestime doing company work.
of disability insurance.Your automobile insurance may also be a type of
As mentioned above, this type of insurance is theshort term insurance if they pay you for injuries
more commonly used type and it protects yousustained in an accident. Of course, if the other
should you become disabled through illness ordriver is at fault, you may be able to recover
injury. These policies usually begin to take effectdamages from them or their insurance company.
once any short term disability policies end. TheLong term insurance is quite another type of
phrase "long term" can be misleading as some ofinsurance altogether. Long term policies may not
these policies may only last 5 or 10 years. If youbegin until you have exhausted all other shorter
have the option, you want one that covers youterm services, but once it does begin it is truly
until age 65.for the long haul, meaning years. While short term
Short term disability insurance, on the other hand,policies are used to help you get through a rough
will cover a certain percentage of your lost salarypatch, long term is used to help you keep your
if you are injured or become too ill to work.home, your automobile, and your lifestyle.
These benefit payments usually begin once yourShort term insurance is usually provided to you
sick leave pay runs out.through secondary means, such as through your
Short term benefits often vary as time passes.employer's participation with worker's
Early on you will probably receive a largecompensation or through your automobile
percentage of your usual pay, but as time goesinsurance. Long term insurance, on the other hand,
on this amount may decrease. In many cases,is bought as its own entity. This purchase can be
short term policies last for six months or sothrough your employer or it can be purchased by
before they are terminated.an individual in which case it is known as private
It should be noted that short term insurance canlong term insurance.
come to you in many ways. For example, sick