How To Use Short Term Disability

Does Short Term Disability Protect Your Job

Short term disability insurance does not necessarily guarantee you job protection. You can be terminated while on disability leave. However, there are employment laws to protect you, like the Americans with Disabilities Act if you feel your termination was due to discrimination. If you are on FMLA leave, you are entitled to your job when you are able to return to work.

Seriously Do You Really Need To Understand Your Short

Heres the short answer: yes. While its not exactly a fun topic to think about, its important that you familiarize yourself with the details of your planso you dont have to get up to speed when you actually need the benefit.

However, wading through our own plan documents is a step that most of us skip. That informational booklet is immediately relegated to our desk drawer or filing cabinet.

Do you remember the first day you started your job? Its kind of a firestormyou cant focus well or often, says McDonald. So we dont spend a lot of time achieving clarity about the benefit in the beginning. We only acquire an understanding of it when we are in deep need of the benefit.

But particularly if you have an existing problem or condition, youre going to want to know the ins and outs of the benefit thats available to you.

Anybody who goes into a new job and has any kind of serious medical condition that could at some point in time render them unable to work, I think its a good idea to be able to see the actual short-term and long-term disability plan documents to see how they define disability and how they handle pre-existing conditions, adds Bartolic.

Ideally, youll never have to take advantage of your short-term disability benefits. But in the event that the unexpected happens, youll be glad that you took the time to understand whats offered to you. This explainer is a good place to start, but you also need to read through the details of your specific plan.

How Can I Qualify For Short Term Disability

To qualify for STD you must first have STD insurance. You only qualify for STD if you experience a covered accident, illness, or injury that prevents you from performing the duties of your occupation. The specific definition of disability will vary by Insurer however, generally speaking, STD could provide coverage for common situations such as:

• Recovery following major surgery
• Mental health issues or leave
• Recovery following an injury or accident

You May Like: Guard Retirement Pay Calculator

How Much Will I Receive From Long Term Disability Insurance Benefits

For employer-sponsored group long term disability insurance, benefits can cover 50% to 80% of your pre-disability salary, with a typical policy covering 66.66%. However for many policies, there may be monthly maximums which put a limit on the amount you can receive.

For individual, private disability policies, benefits are pre-determined by the disability policy so that an injured or sick person already understands what their monthly disability benefit will amount to in the event they are unable to work.

How Does Employment Insurance Work With Short Term Disability

Employment Insurance is a federal benefit that operates very similarly to STD, providing income replacement in the event an accident, illness, or injury prevents you from working. If you become unable to work and have STD through an employer, your STD benefit will take priority over any EI benefits.

Since the coverages work very similarly, were often asked something along the lines of, Why should I have STD if EI already covers me?

While its true that EI offers similar coverage, there are several advantages to a STD plan over EI benefits. EI is not usually as comprehensive an employer-sponsored STD plan, often having longer waiting periods and lower weekly payments. Furthermore, EIs income replacement is taxable to the employee, whereas STD benefits, depending on plan design, are not. Both STD and LTD benefits can be set up as taxable to the employee or non-taxable to the employee .

Recommended Reading: Gerald Welt Attorney Las Vegas

Best Overall: Mutual Of Omaha

Mutual_of_Omaha

Taking the top spot for best overall short-term disability insurance coverage is Mutual of Omaha. This insurer provides up to 24 months of benefits , with some policies offering coverage from the very first day of your eligible disability. Monthly benefits are available up to $5,000, and policies can be issued through age 61.

• Benefit periods range from three to 24 months

• Maximum monthly benefit of $5,000

• Elimination periods between zero and 90 days

• Generous built-in policy benefits

• Losses resulting from mental or nervous disorders are excluded

• Partial disability benefits only available for up to six months, regardless of overall policy length

• Policies must be purchased through an agent

Mutual of Omaha has been around since 1909, when it first started offering health and accident insurance coverage. The company has an A+ financial strength rating from AM Best. It offers insurance coverage across the country, though not all policies are available in all states.

Short-term disability coverage through Mutual of Omaha is some of the most comprehensive and benefit-rich around, which is why we chose them as the overall best provider. Coverage maxes out at $5,000 per month, with benefit periods ranging anywhere from three months to as long as 24 months. Elimination periods are available in more typical lengths , but the company also offers immediate coverage with 0/7-day and 0/14-day options.

More Opportunities For Coverage

You can provide Short Term Disability insurance for your employees. You can also offer them the option to increase their coverage at group rates. Consider adding a Short Term Disability plan for buy-up.

Even if you’re not providing group insurance, your employees can still take advantage of group rates when buying their own coverage or coverage for their dependents. Consider adding Short Term Disability insurance for purchase.

You May Like: What Does Non Medical Disability Mean

How Alex Can Help

Understanding the complexities of short- and long-term disability isnt always easy. ALEX is here to help you explain the differences to your employees. Backed by behavioral science, ALEX helps employees understand all their options and make an educated decision on their benefits. In fact, 85% of users say ALEX helped them better understand tax savings related to their benefits choices.

Find out how ALEX boosts benefits understanding and saves you time and money.

Which Is Better: Short

To answer that question, you have to think about your potential earnings over the short and long term. While its true that you could end up losing tens of thousands of dollars over the short term, a long-term disability could result in lost wages in the millions of dollars.

Besides, you can self-insure for a short-term disability by building up an emergency fund. A robust emergency fund should be able to pay for your living expenses for up to 6 months.

For that reason, a long-term disability plan is much more vital to your financial plan than short-term disability coverage.

Recommended Reading: How Much Does California Disability Pay

Types Of Disability Insurance Available

Individuals can obtain short-term and long-term disability insurance through an insurance agency or through an employer-sponsored policy. However, there are also federal and state disability programs operated through the Social Security Administration or state equivalent.

Short-term disability insurance provides monthly checks, typically just a portion of your income before taxes, for up to one year. After that, a long-term disability insurance policy provides financial assistance. Another plan called supplemental disability insurance will provide you with additional income above and beyond what is offered by an employer-sponsored plan.

In addition, you can seek out a policy called mortgage disability insurance to specifically cover your mortgage payments in the event of a disabling illness or injury. Business owners can pay for the business equivalent of mortgage disability insurance, called business overhead expense disability insurance, to ensure their employees, utility bills and rent payments continue to get paid. However, business overhead expense disability insurance will not cover the business owners salary, so its important to still take out a long-term disability insurance policy.

Making A Coverage Change

Complete the Voluntary Disability Insurance Enrollment and Change Form at any time of year if you want to:

• Enroll for the first time or re-enroll
• Increase your coverage
• Change your coverage because of a qualifying event

Return the form to Employee Benefits in the Donhowe Building. For re-enrollment or increasing coverage you will need to provide proof of good health . Complete the statement of health form on the Unum website and use access code 3BPP4WN.

You can decrease or cancel your disability coverage only during Open Enrollment in November or for a qualifying event. Open Enrollment changes take effect the following January 1.

Read Also: Ssdi Asset Limits 2015

Is Short Term Disability Taxable

The answer to this depends on how you pay for your disability plan. If you pay with after-tax dollars, you are not on the hook for paying income taxes on the payments you received. If you pay with pre-tax dollars, the amount of payments could be considered part of your income, and you would be liable to pay income taxes on those payments.

Short Term Disability Vs Long Term Disability

The main differences between short term and long term disability insurance are:

• The injuries and illnesses they cover.
• How long you can receive disability benefits.
• How long you have to wait following a disabling event to receive compensation.

You shouldn’t skip long term disability insurance coverage in lieu of having just a short-term policy. Short term coverage will not be adequate in the event you suffer a serious injury or illness. Without long term coverage, you could find yourself without any kind of income after just a few months.

The best strategy is to buy an individual long term disability insurance policy then supplement it with any short term and/or long term group plans your employer may offer. By combining different types of coverage, you can protect your income against just about any type of injury or illness that would affect your ability to earn an income.

Learn More:Short Term vs. Long Term Disability

Also Check: Va Rating For Bulging Disc

How Is Short Term Disability Coordinated With Long Term Disability

Endowed Employees. During your short-term disability period, if your doctors report indicates no approximate return to work date, or a return date beyond 26 weeks, Medical Leaves Administration will contact you in order to begin the Long Term Disability application process with the insurance company. It is to your advantage to complete the necessary forms and return them to Medical Leaves Administration as quickly as possible. The determination process for Long Term Disability benefits takes approximately two-three months. If you return to work in the meantime, your claim will be withdrawn.

Contract College Employees:

Contract college employees who participate in the SUNY-ORP or who are NOT vested under NYSERS for disability benefits will follow the procedures outlined above, since benefits, if approved, will be paid by the Endowed Long Term Disability Plan.

Contract college employees who are vested in NYSERS will be contacted by Benefit Services to begin the process of applying for NYSERS Disability Retirement Benefits.

Note: Employees who are vested in NYSERS may also be eligible for benefits from the Cornell Long Term Disability Plan if they elect to continue participating after NYSERS vesting. Contact Medical Leaves Administration at 255-1177 for more information.

Questions? Contact Medical Leaves Administration, located at 365 Pine Tree Road, 255-1177.

Please Take Special Note:

Application And Approval Process

An employee who is out of work due to a Disability should file a disability claim by entering an application for leave in the Universitys Workday on-line system:

• Go to Workday “Time Off and Leave” application,
• Enter the “First Day of Leave” and the “Estimated Last Day of Leave,” and

The employee will then be directed to download the appropriate forms from the Requesting a Leave of Absence webpage. Please note that the employee’s leave request is not complete until the employee provides the FMLA Administrator with the required information, including an updated Physician Certification Form.

The employee must have the employees physician complete a Physician Certification Form and submit the form to the FMLA Administrator within 20 calendar days of the leave request. A delay in the return of the completed Physician Certification Form may cause a delay in the payment of STD benefits.

On the basis of information received, the FMLA Administrator will determine in a timely manner whether the employees health condition constitutes a Disability that may entitle the employee to STD benefits . If such condition exists and all requirements are met, the FMLA Administrator will provide the effective date of the disability and pay any retroactive short-term disability benefits that are due. FML will run concurrently with any STD benefits to which the employee is determined to be entitled but since FML is unpaid, will not result in any additional benefits.

Don’t Miss: How To Calculate Disability Retirement Pay

Should You Offer Disability Insurance

Offering disability insurance alongside other benefits like health insurance and life insurance can make your employees feel highly valued by your company and can boost morale around the office. However, sometimes a robust benefits package just isnt feasible for a small-business budget. In that case, you can choose to provide education about disability insurance options and help your employees find a policy that suits their needs.

Work with your human resources department to determine other disability policies you can institute to care for your employees. You can even experience tax benefits by hiring people with disabilities, and it can give other employees some peace of mind to know that youre an accommodating employer.

References

What Qualifies For Short

To qualify for short-term disability benefits, an employee must be unable to do their job, as deemed by a medical professional. Medical conditions that prevent an employee from working for several weeks to months, such as pregnancy, surgery rehabilitation, or severe illness, can qualify to receive benefits. Since employers in most states must legally provide workers’ compensation insurance to all employees, any injuries incurred on the job are typically covered under a workers’ comp policy and are therefore not eligible for short-term disability.

While most non-work-related temporary medical conditions are covered by a short-term disability policy, there can be exclusions for preexisting conditions or intentional and foreseeable injuries . While employees can qualify for time off under the Family and Medical Leave Act to care for a sick relative, most short-term disability policies would not provide benefits if the covered employee is not the one with the illness.

Also Check: Military Retirement Pay Calculator 2014

Disability Insurance And Paid Family Leave Benefits

The California State Disability Insurance program provides short-term Disability Insurance and Paid Family Leave wage replacement benefits to eligible workers who need time off work.

You may be eligible for DI if you are unable to work due to non-work-related illness or injury, pregnancy, or childbirth.

You may be eligible for PFL to:

• Care for a seriously ill family member.
• Bond with a new child.
• Participate in a qualifying event because of a family memberâs military deployment to a foreign country.

To file for benefits, read messages from the EDD, submit online forms, or manage your profile, access your SDI Online account.

Note: It may be necessary to send some documents via U.S. mail.

To provide feedback about the SDI information available on the EDD website, take our SDI Survey.

Attract And Retain Top Talent

Prospective employees are looking at an employers benefit plan when weighing their job options. The more comprehensive the plan, the better, and Disability Insurance is near the top of the priority list. Employers who want to remain competitive when it comes to acquiring and keeping their talent should look carefully at Disability Insurance options.

You May Like: 20 Percent Disability Rating

Who Pays For Short Term Disability Insurance

This depends on the plan your employer uses. Your employer will determine many of the characteristics of the STD plan, including the portion of the cost they will cover. Who pays for coverage is the main difference between short term disability coverage and workers compensation coverage. Employers are required by state law to have workers compensation insurance when they hire their first employee. It protects employees and employers in the event of an injury on the job.

How To File For Short

Tip: If you work for UPS, there are a few more steps youll need to follow. If youre not a UPS employee, you can skip those steps.

Disabled as a result of a non-work-related injury or illness

Unable to work due to pregnancy

Receiving regular care from your doctor that interrupts your ability to work

Actively employed and covered by the Plan when you become disabled

For members who work for UPS:

Call the Central Office: Any UPS employee going on medical leave is required to call the central office immediately to report their leave. It is your responsibility to contact UPS with this information.

Call The Hartford: After calling the UPS central office, you will need to call The Hartford at to report your leave. A medical document supporting your leave must be provided. Once youre on leave, medical documents must be sent to The Hartford every 60 days to recertify your leave you can upload those documents at .

If you work for UPS in New Jersey or New York, you must submit your claim through The Hartford either by calling to reach a The Hartford representative, or online at .

If you work for UPS in California or Rhode Island, you must submit your claim through your states short-term disability program. A copy of that claim should then be submitted to TeamCare.

For all members:

Read Also: How To Increase Va Disability From 70 To 100