What is Short Term Disability, and why is it important? Over the past 30 days my office has filed 14 Short Term Disability Claims with policyholders stricken with COVID-19. All 19 were extremely happy they had the coverage in place before the epidemic took place. While in quarantine and unable to work, they continued to receive income from their Disability plan. The Disability payments were able to keep the kids fed, make the car payment, and meet the mortgage.
Here are some of the most important reasons to have Short Term Disability.
1. It is a Financial Safety Net. Disability insurance pays the policy holder a cash sum each month of disability. The intent of the coverage is to replace wages lost due to the policyholders inability to work due to off the job accident or any sickness. The amount paid and the length of time payments are received will vary based on the policyholders selections at the time the policy was written. Most commonly I sell 3 month and 6 months of coverage, but most carriers can cover up to 24 months of lost wages.
2. Disability often Pay Benefits on a “Tax-Free” Basis. If premiums are paid for with post-tax dollars, then each and every dollar paid during a time of disability are not taxable to the policyholder. This is an enormous benefit at a time when one is stricken with a disability which prevents them from working. During such times, each dollar becomes more valuable than the one which preceded it.
3. You are More Likely to File a Short Term Disability Claim. If you are like me, I am always trying to use the dollars I have allocated in my budget for insurance, to go where I am most likely to get my money back. One of the amazing things about disability is you can qualify for payments (once the elimination period has been satisfied) for both Accident and Sickness. Because the qualifying reasons for disability are so broad, the likelihood for claim is also higher. Most carriers I represent even go so far as to pay the Mother for the six weeks of maternity leave following the birth of a child, EVEN if no complications occur!
At Hurley Benefit Services, we represent several great carriers which offer Short Term Disability. Quotes are always free and without obligation.
W. Michael Hurley – Agent/Owner Hurley Benefit Services LLC