People will buy short term disability insurance to cover the possibility of being out of work for periods of up to twenty-six weeks. Instances which may require the utilization of short term disability insurance are pregnancy, back injury, and similar situations.
Who is Eligible for Short Term Disability Insurance?
Short term disability insurance, also known as sick leave, will compensate an employee a specific proportion of his normal salary should he/she become incapable of working. Depending upon the terms of the short term disability insurance policy, the payout may range between fifty to sixty-six percent of salary for a period lasting between thirteen and twenty-six weeks. Usually, benefits may be obtained immediately should the person suffer a serious accident but there is a waiting period if they become infirm. Considering the latter, the insurance company has to determine if an illness appears that it will prohibit an employee's working for an extended period of time.
How to Apply for Short Term Disability Coverage
Unfortunately, there are not many insurance companies to be found which presently offer short term disability insurance for individual purchase and premiums on those available are very high. Normally, the single method of purchasing short term disability insurance coverage which is affordable is through an employer-sponsored group insurance plan. Again, should one's employer not provide the coverage, it is possible to obtain the insurance individually. There are those large insurance companies which sell individual disability insurance policies straight to the consumer.
The various policies will have different terms of coverage. Items to evaluate when purchasing short term disability insurance include the following: whether personal savings is sufficient to sustain the policyholder for a period of time; the percentage of salary which is subsidized; any stipulated period of time before one is vested in the insurance; the length of time required to be out of work before benefits begin; the limit on the payout period.
Need of Physical Examination While Applying
Many of the employer-sponsored short term disability policies do not mandate a physical examination. However, obtaining the insurance on one's own will likely mean that the person will have to prove his health prior to being approved to purchase a policy. This will probably include his giving blood and urine specimens for testing for disease and tobacco use. Many insurance companies provide a nurse who will make a house call to collect the specimens from the applicant.
Reference: ers.state.tx.us, site viewed on 2 February, 2010
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