How Long Does Short-Term Disability Last?

When a disability prevents you from being able to perform regular work duties for an extended period of time, obviously, your finances can take a hit if you're unprepared. If you’re employed by a large company, it’s likely that you have short-term disability insurance provided as an employee benefit at little or no cost to you, which can help replace a portion of your income while you're affected. But if you work for a small company or are self-employed, you may need to consider getting this coverage for yourself.

Fortunately, an independent insurance agent can help you get set up with all the short-term disability insurance you need. They'll get you matched to the right policy for your circumstances. But first, here's a breakdown of how long you can be on short-term disability and more. 

How Long Does Short-Term Disability Insurance Last?

So, how long is short-term disability insurance? Unlike group disability insurance that's provided by an employer where the employer chooses the coverage options when purchasing individual disability insurance, you’ll be able to choose these options yourself. There are three major choices you’ll need to make, and they all affect the policy's cost:

1. Coverage amount: How much do you realistically need every month when you’re not collecting a paycheck? No insurance company will cover your full salary because that could encourage fraud, but keep in mind that if you’re paying for your own disability insurance with after-tax dollars, the disability payments you receive won’t be taxed. This is why most short-term disability policies will pay only about 60% of your current salary.
2. Benefit period: This is how long the payments will continue after you begin receiving them and while you remain disabled. So, how many weeks is short-term disability? Standard benefit periods actually last 3, 6, 9, 12, 18, or 24 months. As you might expect, the cost goes up as the benefit period increases.
3. Waiting period: Short-term disability insurance has a waiting period known as the elimination period. This is the time between when you become disabled and when you begin receiving payments. A seven-day waiting period is standard, but some companies have elimination periods that can last up to 90 days or more. The shorter this period is, the more the insurance will cost you.

In short, you can usually buy short-term disability insurance for up to 24 months. However, different policy terms are available, so you may be able to find a policy that offers coverage for a longer period if necessary.

How Long Does Individual Disability Last Compared to Group Disability Insurance?

Group disability isn’t fundamentally different from individual disability, so the benefit period is as described above. The major difference is who pays for it and, therefore, who chooses the benefit period. Of course, if you own your own business and you provide group disability for your employees, then it is you who chooses.

How Long Does Short-Term Disability Last Compared to Long-Term Disability Insurance?

If you've been wondering, "How long can you get short-term disability insurance for?" or "How long can you stay on short-term disability?" consider this. Short-term disability is intended to cover the gap between the time you become disabled and the time your long-term disability coverage begins or the time when you become able to resume working, whichever comes first. 

The length of short-term disability can range from one or two weeks up to two years, with 30 to 90 days being common. So, the answer to "How long is short-term disability insurance?" can range from a week to two years or more.

What Occupations Should Consider Short-Term Disability Coverage?

The answer to this is simple: any occupation you depend on for income. While dangerous occupations and hobbies may increase the risk of becoming disabled, there are many ways you can become disabled other than through injuries. 

In fact, illnesses account for the majority of disability claims. It’s safe to say that if you depend on your income to maintain your standard of living, then you should probably carry short-term disability insurance.

How Long Does Short-Term Disability Last If You Leave a Job or Get Fired?

You may also be asking, "Short-term disability lasts for how long if you quit or get fired?" Well, if you quit or lose your job, you no longer have an income to protect and thus become ineligible for disability insurance. However, if you were collecting disability payments when you quit or lost your job, those payments will continue either until you’re able to resume working again or the benefit period ends.  

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What to Do When Short-Term Disability Coverage Runs Out

If you’re on short-term disability when the benefit period expires, and you’re still unable to work, long-term disability will kick in if you have it. If you don’t have long-term disability insurance, you may be able to qualify for Social Security Disability Benefits. In order to qualify, you must meet the following requirements:

The application process for Social Security disability can be a lengthy affair and many applicants are rejected, so you should begin the application process well before your short-term disability insurance expires.

Why Choose an Independent Insurance Agent?

A vast network of independent insurance agents can provide you with a large selection of individual short-term disability policies that offer the security you need against an unexpected loss of income. Independent insurance agents simplify the process of shopping and comparing disability insurance. They’ll also be there for you in the future if your needs change or questions arise.