The distinction in this nomenclature is that these benefits are not provided by the employer as part of a compensation package.
The characteristics of employer-provided short-term disability benefits are:
- You must have used up all of the leave (sick AND vacation) available;
- Benefits are limited to 60% of your income at the time of disability; and
- Benefits are taxable.
- Benefits are generally not paid if you qualify for Workers’ Compensation.
So, why purchase supplemental disability insurance if your employer is providing a similar program as part of your package? The answer to this question is simple and straightforward:
- Employer-provided short-term disability coverage ends with employment termination
- You can obtain Short Term Disability coverage that will pay benefits, over-and-above any other income you receive
- You can design your own disability program, which includes:
- Length of time of being disabled before your benefits are payable, known as a WAITING PERIOD (7 days, 14 days, 30 days)
- Amount of benefit desired, payable monthly ($300 to $5,000) with an upper limit of 60% of income at time of disability
- Length of time disability benefits are payable (26, 52 or 104 weeks)
- Portability of program, which means you can take the same program with you wherever you are employed
- Benefits payable regardless of any other income (workers’ compensation; unemployment compensation, salary )
- Preexisting conditions included, after 12 months of having the policy.
- Rates remain constant
- TAX FREE BENEFITS—this advantage equals tax-free benefits roughly equaling an employee’s take-home pay even while out on disability.
YES! The above disability insurance program IS available to you.
Add another HUGE feature: A GUARANTEED-ACCEPTANCE DISABILITY INCOME PROGRAM, providing you are actively at work when you enroll.
So, now you ask…
- “How do I enroll in such a perfect voluntary short-term disability insurance program?”
- “What will all this cost me?”
We are ready to answer those questions!
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