The short term disability is a kind of insurance benefit that offers some income replacement for the illness that is not related to work which makes you impaired for a certain period. This takes from a day to 6 months.
When we use the phrase ‘not related’, this implies to illness that occurs while on the clock and this will be covered by workers’ compensation. There are some questions that will merry-go-round our thought process and here they are:
Who Provides Short-Term Disability Insurance?
Employer of an organization might decide to offer a short term disability policy as a benefit to his or her employees. However, the majority of this time firms aren’t required to know.
In the US, we have only five states where it is compulsory that employers of a firm offer short term disability policy to their employees, these states are, Rhode Island, New Jersey, Hawaii, California, and New York.
Many employers have no choice but to offer this disability benefit, as they are being taxed by the federal governments for doing so. If you are lucky to own an organization, you can structure your short term disability insurance for your employees in two ways such as:
- Self-funded or self-administered: Here, you as an employer work, offer, and fund all these benefits to all your employees.
- Insurance: Here, the employer works hand in hand with an insurance company to offer all these benefits.
Is Mental illness covered with Short-Term Disability?
There are some cases that will make you stay away from work or function well. Sometimes, it can be a mental illness that comes as an impediment between you and your duties. Mental health cases can be covered by short term disability policy when matter like this arises.
However, you have to prepare your documents as evidence that you were struggling with mental illness. This will help you secure all your benefits between your employer and insurance firm. It is advisable to meet with a psychiatric doctor to have a solid foundation of what led to the problem.
How Much Payment When You Take Short-Term Disability?
When an individual take advantage of this short term disability insurance benefits their time off is paid. This doesn’t mean you will be paid your full premium. The amount you get depends on the specific plan that you are.
Some short term disability insurance policy offers full income replacement, but most of them don’t. Rather they provide a percentage of compensation which is usually 50 to 60% of your weekly income.
How Often Will You Receive your Short Term Disability Insurance Payments?
This payment option varies because it has to follow the documents you have signed with the insurance company. You have to be conscious that if your Boss (employer) works with an insurance company to provide short term disability benefits, then you will receive payment through the insurance firm. What this means your payment will be paid on a schedule that is different from the payroll you are accustomed to.
How Do You File for Short-Term Insurance Disability?
If you are optimistic that you will like to take full advantage of short term disability insurance benefit:
Your first plan is to endeavour that your sickness or accident is documented properly, as you will need to provide some medical evidence. Consulting a medical doctor to get a deep knowledge of what you are going through.
You have to be sincere when having an interrogation about your signs and symptoms. The purpose of this is to allow the doctor to carry out the right diagnosis for you if need be. All these medical records you have documented will be reviewed by an insurance firm.
The second plan is to meet with the human relations department to start the process of filing your claim. This takes a fairly standard form. In a case whereby you don’t have an HR, you can get in touch with your manager to know what you have to do to submit all personal claims.
You must be certain that your short term disability insurance policy has a basic requirement for the days you have to stay away from work -This is called the elimination period.
How Much Paperwork Is Involved in Short Term Disability Insurance?
The original paperwork that will be tendered to complete this process depends on your entire specific policy. But this entire process commences with a straightforward claim form that demands some of your information such as medical records, address, from your employer – basic salary & job duties, and lastly from a medical doctor.
This is evidence that shows the reason for your staying away from work.
Luckily, if you become confused about any of the documents or applications you have compiled, you can request help be it from your company’s HR department or people at your doctor’s office.
Can Maternity Leave be related as Short-Term Disability?
You would have come across a situation where female employees make use of their short term disability insurance for their maternity leave. Whether you are going to do it yourself or require help from an attorney depends on your plan.
We do see a short term disability plan that particularly addresses maternity leave. These policies also help in explaining how much time you will be given. This period varies on either the mother had a C-section or vaginal birth delivery.
Some employers would prefer to take maternity leave from their short term disability insurance policy and go for a separate plan that will cater paid leave for child delivery.
Is Your Job Secured While You Take Short-Term Disability Plan?
Unlike taking a leave from being absent from work, you can take it under the family and Medical Leave Act (FMLA). The real truth is insurance policy doesn’t provide any job protection.
Many employees or workers will be surprised to hear this that they can be sacked while they are on leave, and you are not entitled to that actual position when you resume. However, in the U.S. there is a body that secures people with definite disabilities.
The actual truth is you can still get short term disability insurance policy via your job. This is otherwise called group disability insurance; this can also be offered as a portion of your premium benefits at a little or no cost at all.