Short-Term vs. Long-Term Disability Insurance

Published: 04.25.2024

What is Disability Insurance?

Disability Insurance—also referred to as Disability Income Insurance, Income Protection or DI—is a type of insurance that replaces part of your income in the event you become sick or have a mental or physical disability that prevents you from working. The amount of your income that is replaced is usually a percentage of your pay.

There are two common types of disability coverage. This includes short-term disability insurance and long-term disability insurance.

What is Short-term vs. Long-term Disability?

Selecting the right disability insurance plan is key, and understanding the differences between Short-term Disability (STD) and Long-term Disability (LTC) allows you to make better-informed decisions when choosing the right disability insurance coverage for your needs.

Whether it's short-term relief or long-term security, having the right protection ensures financial well-being during challenging times.

For more details on the differences between Short-term Disability vs. Long-term Disability Insurance Plans, see our comparison chart below.

	Short-Term Disability	Long-Term Disability
Duration of Coverage	Typically covers a shorter period, often ranging from a few weeks up to a year.	Provides coverage for an extended duration, starting after the short-term disability period ends. It can last for years or even until retirement age, depending on the policy.
Waiting Period	Has a relatively shorter waiting or elimination period before benefits kick in, often around 0 to 14 days.	Usually has a longer waiting period, ranging from several weeks to months, before benefits become payable.
Benefit Amount	Offers a higher percentage of your salary, sometimes close to your full income, during the covered period and is paid out weekly.	Provides a lower percentage of your salary compared to short-term disability but extends over a longer period and is paid out monthly.
Coverage	Primarily designed for temporary disabilities, such as maternity/pregnancy, recovery from surgery, illness, or injuries that are expected to heal.	Covers more severe and long-lasting disabilities that may prevent you from working for an extended period or permanently.

Secure your financial future with Disability Insurance.
Your most valuable asset isn’t your home, car or 401k—it is your ability to make a living.

Contact our team today for more information.