Sudden illness or injury may deplete finances, but temporary disability benefits protect your income. Learn more about who is eligible and how to apply.
Updated April 25, 2024
Sometimes a disability comes out of the blue without notice. Even if it’s a temporary disability, such as a broken bone or concussion, the injury or condition can keep you from working for a significant period of time.
Fortunately, there are temporary disability benefits programs in place that can help you cover wage loss or loss of earning capacity from a short-term disability.
In this post, we’ll explore what temporary disability benefits are, as well as answers to common questions about qualifying and applying for these benefits.
Temporary disability benefits are financial assistance provided to those who are temporarily unable to work due to a short-term disability. These benefits help replace a portion of lost income during the period you’re unable to work.
A temporary or short-term disability is an injury, illness, or medical condition that’s expected to improve in more than a month but less than a year.
If you acquire a short-term disability, you may wonder if you qualify for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).
Both programs are designed to provide benefits to those whose conditions are long-term (expected to last 12 months or longer) or result in death. Since a temporary disability is defined as a condition that can improve in less than a year, you cannot receive temporary SSI or SSDI benefits.
While you won’t qualify for SSI or SSDI benefits with a temporary disability, you can still get financial assistance from other programs. Here are some common ways to get temporary disability benefits:
Short-term disability insurance is typically offered through employers or purchased individually. It provides income replacement for employees who are temporarily unable to work due to a non-work-related illness, injury, or medical condition.
Some U.S. states and territories, such as Rhode Island, New York, Hawaii, and Puerto Rico, have laws that require employers to extend the temporary disability insurance program to individuals with short-term disabilities who the federal government does not cover.
Workers’ compensation benefits are provided to employees who suffer a work-related injury or illness. These benefits typically include coverage for medical expenses related to the injury or illness and a portion of lost wages during the recovery period.
Non-occupational injuries, major surgery, chronic conditions, and illnesses expected to improve in more than a month but less than one year qualify as a short-term disability.
Your doctor or a qualified medical examiner determines the severity of your illness and recommends a period of recovery or restricted activity. The employer, Social Security Administration, and the insurance provider then use the medical specialist’s evaluation to learn about the disability rating, or “partial disability” status.
On the other hand, workers’ compensation covers any bodily harm or physical impairment on the job. To determine how much workers’ compensation you’re eligible for, you’ll fall into one of two categories:
Unexpected circumstances may hinder an individual’s ability to work for a short time. During this period, where employment TTD benefits and paid family leave are a cash flow solution, your full recovery becomes the foremost priority before resuming your regular work schedule or performing any job duties again.
Significant factors that can cause temporary disability include:
After filing a claim with the insurer or the state and successfully undergoing a review for short-term disability, you are officially eligible to aid in rehabilitating your physical or mental health. It is important to note that the latency period can vary by insurer.
Within 14-45 days, a standard insurance company will notify you of their decision to approve you for a three- to six-month temporary disability insurance policy.
Regardless of how long the disability lasts, you are entitled to pay the premiums, and the insurer is responsible for covering all TTD benefits due to you.
Short-term disability insurance gives you a cash benefit depending on your longevity with the company. Your employer-sponsored plan typically pays 50% to 60% of your weekly wages, so you can use the money to get back on your feet.
You can alternatively get your entire paycheck from another broker or protection policy to make up the difference. And where the state mandates short-term disability insurance, authorities may regulate the percentage of your salary they can pay.
How long short-term disability insurance lasts varies depending on the policy. Some policies offer coverage for up to a year, while others may have shorter payout windows, such as six months or three months.
While some income safeguard packages will have a decreasing payout after a certain period, others will have a steady reimbursement that does not change in the face of a set time frame. There’s no sweet spot in between. So, to avoid surprises it’s important for individuals purchasing these policies to thoroughly review the details in the insurance contract.
You can get short-term disability insurance a few different ways. Here are some popular methods that you can use to get short-term disability insurance:
There are a few things to keep in mind before applying for benefits with a temporary disability:
While government benefit programs typically cater to individuals with long-term disabilities, you may qualify for benefits if your disability lasts over 12 months. At Benefits.com, we aim to help all U.S. residents navigate government programs effectively. Discover your eligibility with our Benefits Quiz to access the best benefits for your situation.
Benefits.com AdvisorsWith expertise spanning local, state, and federal benefit programs, our team is dedicated to guiding individuals towards the perfect program tailored to their unique circumstances.
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